Family Office Governance refers to the framework and processes that guide the management and oversight of a family office, which is a private wealth management advisory firm that serves ultra-high-net-worth individuals and families. Governance is crucial as it helps ensure that the family’s wealth is preserved and grown over generations while aligning with the family’s values and objectives. Effective governance structures facilitate strategic decision-making, risk management and accountability, thereby enhancing the overall performance of the family office.
Definition ESG stands for Environmental, Social and Governance, three critical factors used to evaluate the sustainability and ethical impact of an investment in a company or business. These criteria help to better determine the future financial performance of companies (return and risk).
Environmental criteria consider how a company performs as a steward of nature.
Social criteria examine how it manages relationships with employees, suppliers, customers and the communities where it operates.
Definition High Net Worth Individual (HNWI) refers to a category used by the financial services industry to describe individuals whose investable assets, excluding their primary residence, exceed a specific threshold. Typically, this threshold is around $1 million, although the exact figure can vary between financial institutions and regions.
Importance of HNWI HNWIs are crucial to the financial sector due to their investment capacity and potential influence on markets and economic trends.
Definition A proxy fight refers to a proxy contest, wherein a group of shareholders attempts to gain control or influence over a company’s management or board of directors by collecting votes from other shareholders. Shareholders provide their voting rights to someone else (the proxy) to vote on their behalf, often in situations where they are dissatisfied with the existing management or strategic direction of the company.
Components of a Proxy Fight The key components involved in a proxy fight include: