Real Estate Compensation Rising
Byline: PRNewswire PRNewswire
Executive compensation at the country's largest 100 publicly traded real estate companies for 2011 is the highest it has been in a decade, having increased by 14 percent compared to last year's previous all-time high for the top four positions (CEO, CFO, COO and general counsel), according to FPL Associates' 10th annual exclusive industry focused review of compensation.
Executive base salaries increased by 10 percent, according to the review.
"This marks the first double digit increase and is likely a 'catch up' after several years of flat to nominal increases," said Vanessa Garza, director at FPL Associates. CEOs alone at nearly 20 percent of the companies included in the study received base salary increases of $100,000 or more.
Increases in base salaries were more than matched by increases in incentive-based compensation, namely the value of long-term incentive awards, which jumped nearly 25 percent compared to last year.
Notably, 2011 marked the third consecutive year of positive total shareholder return performance among REITs and record level of capital raising.
"Total shareholder returns for the REIT sector outperformed the S&P 500, the Nasdaq and Dow Jones for not only 2011 but also over the three-year period since the financial crisis," according to Jeremy Banoff, senior managing director at FPL Associates, "and total shareholder return is the most common metric utilized for determining long-term incentive awards. …