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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.