What Due Diligence Should a Family Conduct Before Hiring an Executive?

Before hiring an executive, establish what the role requires and then check whether the candidate can be trusted to do that work well. In my experience, a family needs to assess both professional ability and personal judgment because the executive may handle private information, work with relatives, and make decisions with lasting effects.

Set the Role and Standards First

Write down the responsibilities, reporting line, decision authority, and outcomes expected from the position. This gives the family a clear basis for comparing candidates and reduces the risk of choosing someone because of a personal connection or an impressive résumé. Agree on the family's standards for confidentiality, conflicts of interest, communication, and how disagreements will be handled.

Be specific about the experience the role calls for. A candidate with investment expertise may not be the right choice to manage administration or family communications. Match the person's background to the actual work, and note which skills can be developed after hiring. The talent search step can help clarify the capabilities a new office needs.

Check the Evidence Behind the Candidate's Claims

Review the candidate's employment history and ask for references who can speak to the work most relevant to the position. Use consistent questions across candidates. Ask what the person was responsible for, how results were measured, and how they responded when a project or relationship became difficult. Where appropriate, confirm credentials and conduct background checks using qualified providers.

Ask the candidate to describe specific situations involving confidential information, competing priorities, or pressure from senior stakeholders. Listen for clear reasoning, accountability, and an ability to explain a decision without disclosing another employer's private information. A polished interview is only one data point, so compare answers with reference feedback and the role's requirements.

Test Working Fit and Judgment

Family office work calls for discretion and steady communication. Give candidates realistic scenarios about handling a sensitive request, explaining an unpopular decision, or managing a disagreement between relatives. Notice whether they listen before responding, explain limits plainly, and distinguish their professional responsibilities from personal relationships.

Include the people who will supervise or work closely with the executive, while keeping the process organized. Each interviewer can assess a defined area, such as technical skill, judgment, communication, or team fit. For hiring authority and oversight, align the process with the family's governance arrangements. The executive's supervisor should be clear before an offer is made.

Make the Decision Reviewable

After interviews and checks, compare candidates against the agreed criteria. Record what evidence supports the decision and where questions remain. Discuss any conflicts of interest, compensation expectations, confidentiality terms, and performance measures with the appropriate advisers. Talk with your attorney or CPA when legal or tax specifics matter.

A careful process cannot remove every risk, but it can expose gaps before the family commits to a senior hire. Keep the role description, interview notes, reference findings, and decision rationale together so the family can revisit its reasoning if expectations change.

Read next: How can a family assess whether a candidate can work well with relatives?

Many families hire professionals they have known for several years already instead of someone else who may be technically better qualified, because the family needs to be able to work with someone who will exercise discretion, balance competing priorities, and not violate family values and norms.

Sources: The Single Family Office. Informational only, not financial, legal or tax advice.