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Industry-Wide Total Top Executive Pay at Real Estate Companies Increased 11.9%, Christenson Advisors Analysis Finds

November 7, 2018

Total compensation rose for top executives, according to a same-store analysis of participating public, private, and not-for-profit companies in Christenson Advisors’ (CA) 2018 Real Estate Compensation Survey. Higher values of long-term incentive grants primarily contributed to the increase in total pay.

The CA analysis found total compensation for Chief Executive Officers (CEOs) increased 6.2%. Total compensation includes base salary, annual incentives/cash bonuses and long-term incentives such as restricted stock, stock options and the annualized value of other real estate interests. The analysis, based on over 200 real estate companies of all types, sizes and geographic regions, revealed that while CEO salaries increased 3%, annual incentives/cash bonuses increased 4.6% at the median. Long-term incentives, often the largest component of executive pay, increased 6% at the median.

Total compensation for Chief Operating Officers (COOs) increased 9.6%. COO salaries, annual incentives/cash bonuses and long-term incentives increased 2.7%, 9.4% and 10.2% at the median, respectively.

Lastly, total compensation for Chief Financial Officers increased 9%. Salaries increased 3.4%, whereas annual incentives/cash bonuses increased 4.8% and long-term incentives increased 10.6% at the median.

CA’s 2018 Real Estate Compensation Survey includes 374 commercial and residential real estate companies, the greatest participation in the survey’s history.

The report serves as a valuable benchmarking resource to compare your company’s pay practices to the market, detailing company information and compensation data for more than 150 positions broken out by ownership status, platform type, asset class, revenue, total capitalization/gross assets, assets under management, number of employees, and incumbent location.

For more information, or to purchase a copy of the survey, please contact Davis Steinbrecher, Vice President, at davis@christensonadvisors.com.

Tips for Successful Hiring in a Hyper-Competetive Job Market

By Jon Boba – October 3, 2018

2018 has become one of the hottest job markets in recent memory. Demand for mid, senior and executive level talent in real estate has reached a fever-pitch, with sought-after candidates often choosing between multiple compelling options.

Companies with critical roles to fill must adapt to this tight competition in order to attract difference-making talent. To achieve successful results in this overheated market, Christenson Advisors recommends three strategies to our clients searching for talent.

Less is More

Today, job seekers do not last long on the open market. With candidates exploring multiple opportunities, a hiring company’s odds dramatically improve by running a quick and efficient interview process. This can be done by limiting the number of decision makers involved to five or less team members (preferably three). The adage ‘too many cooks spoil the broth’ is true in search, particularly in 2018. Firms need to be efficient and decisive. Those that take weeks to accommodate interview schedules and require candidates to return for multiple follow-up interviews risk losing these talented options to firms with a more streamlined process. Limit candidates to three rounds of interviews and be prepared to move quickly once a candidate worth hiring is identified.

Be on the Same Page

It is critical that each member of the hiring team can communicate a clear, honest, and positive description of the firm and the opportunity. Each team member should understand, and agree with, the need for the position. This will prevent the process being consciously or sub-consciously subverted. A team member that is not in complete alignment should be excluded from the process, otherwise his/her words or actions can compromise the search and lessen the company’s ability to attract compelling talent. Furthermore, while no candidate should expect a role to be ‘trouble-free,’ the position’s challenges should be presented as an opportunity for the successful candidate to become a change-agent, solving or improving an area of critical need.

Stay Close

Once the successful candidate accepts the position and signs an offer letter the real work begins. Time and again we have seen candidates sign employment agreements and suddenly renege, returning to their current firm or even accepting a new opportunity that presented itself during the transition period. Companies can counter this by getting the new hire immediately involved through regular lunches/dinners, invitations to company events, participation on update calls, sharing project specific updates, etc. A combination of these methods will help ease the transition, allow the successful candidate to feel part of the organization, and lessen the temptation to withdraw.

Implementing these strategies should greatly enhance your company’s ability to attract, close and employ talent in this competitive labor market. And, of course, the team at Christenson Advisors is always happy and willing to help. Good luck!

Christenson Advisors Launches New Service Delivery Partnership

Christenson Advisors is pleased to announce the launch of a customized service delivery focused on exclusive and confidential representation of top commercial brokers and teams.

This specialized representation, offered exclusively by invitation only to teams identified through industry performance and valuation, will be spearheaded by Katie Becker, Managing Principal, in partnership with Robert Bagguley, Founder and Principal at Bespoke Real Estate Advisors, Inc.

Having previously worked together on numerous assignments, Katie and Robert are excited to partner in creating win-win opportunities for both the teams and their future employers.

Katie brings proven experience in exclusive representation of commission brokers as well as leading a global commercial real estate service company’s recruitment efforts. Robert brings more than forty years of executive leadership within global commercial real estate services companies representing owners in the recruitment and development of brokerage talent.

The service includes team identification and valuation, development of team resume and marketing materials, strategy and identification of the perfect platform that maximizes the specific team’s potential for future earnings, and representation and subsequent negotiation through the entire process.

For more information please visit www.TopTierRep.com

Katie Becker                                                                  Robert Bagguley
Managing Principal                                                     Founding Principal
312.802.0300                                                              415.450.0873
katie@christensonadvisors.com                        robert.bagguley@bespokerea.com

 

Total Top Executive Pay at Real Estate Companies Increased 28%, Christenson Advisors Analysis Finds    

Total compensation rose for top executives, according to a same-store analysis of participating companies in Christenson Advisors’ (CA) 2016 Real Estate Compensation Survey.  Higher values of long-term incentive grants primarily contributed to the increase in total pay.

The CA analysis found total compensation for Chief Executive Officers (CEOs) increased 16.1%. Total compensation includes base salary, annual incentives/cash bonuses and long-term incentives such as restricted stock, stock options and the annualized value of other real estate interests.  The analysis, based on over 100 real estate companies of all types, sizes and geographic regions, revealed that while CEO salaries increased 2.6%, annual incentives/cash bonuses increased 3.7% at the median.  Long-term incentives, often the largest component of executive pay, increased 9.8% at the median.

Total compensation for Chief Operating Officers (COOs) increased 27.8%.  COO salaries, annual incentives/cash bonuses and long-term incentives increased 3.9%, 9.5% and 14.5% at the median, respectively.

Lastly, total compensation for Chief Financial Officers increased 27.5%.  Salaries increased 4%, whereas annual incentives/cash bonuses increased 8.9% and long-term incentives increased 14.7% at the median.

CA’s 2016 Real Estate Compensation Survey includes 338 commercial and residential real estate companies, the greatest participation in the survey’s history.

For more information, or to purchase a copy of the survey, please contact Scott Kolb, Principal, at scott@christensonadvisors.com or 312-214-3480.  The report serves as a valuable benchmarking resource to compare your company’s pay practices to the market, detailing company information and compensation data for more than 120 positions broken out by ownership status, platform type, asset class, revenue, total capitalization/gross assets, assets under management, number of employees, and incumbent location.