FPL Advisors, led by Bill Ferguson and Michael Herzberg, have just released their latest global business update which highlights how industry compensation levels lose some of their recent froth in the ongoing market adjustment.
No surprise, FPL compensation studies indicate private companies will have an "increasingly difficult" time generating "the outsized returns associated with long-term incentive programs vis a vis project/equity participation" compared to the past several years. Since public company shares turned negative last year, equity grants, largely predicated on shareholder performance, will "slow" and "decrease." But the good news is "cash bonuses remain sound," given continuing strong operational performance.
Budget strictures should limit overall base salary increases to about 3.5% to 4% for all employees, according to FPL analysis.
Although the job market on the debt side of the business has stalled, FPL reports recruiting activity has remained generally positive across all international regions, especially in Asia which experiences a continuing "shortage of Western-trained talent." The U.S. "remains surprisingly active", despite a "slowdown" in finance and development sectors. Europe has been hit harder, especially London. But the UK capital has also been buoyed somewhat by its pivotal role in global growth markets.
Interestingly, the Middle East emerges as the most active user of executive search, according to FPL -- Israeli developers expand into new markets and Arab Gulf states look to invest more capital worldwide.
View a pdf of the full FPL report below.
(Miller Ryan has an affiliate relationship with FPL)
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Jonathan D. Miller
A marketing communication strategist who turned to real estate analysis, Jonathan D. Miller is a foremost interpreter of 21st citistate futures – cities and suburbs alike – seen through the lens of lifestyles and market realities. For more than 20 years (1992-2013), Miller authored Emerging Trends in Real Estate, the leading commercial real estate industry outlook report, published annually by PricewaterhouseCoopers and the Urban Land Institute (ULI). He has lectures frequently on trends in real estate, including the future of America's major 24-hour urban centers and sprawling suburbs. He also has been author of ULI’s annual forecasts on infrastructure and its What’s Next? series of forecasts. On a weekly basis, he writes the Trendczar blog for GlobeStreet.com, the real estate news website. Outside his published forecasting work, Miller is a prominent communications/institutional investor-marketing strategist and partner in Miller Ryan LLC, helping corporate clients develop and execute branding and communications programs. He led the re-branding of GMAC Commercial Mortgage to Capmark Financial Group Inc. and he was part of the management team that helped build Equitable Real Estate Investment Management, Inc. (subsequently Lend Lease Real Estate Investments, Inc.) into the leading real estate advisor to pension funds and other real institutional investors. He joined the Equitable Life Assurance Society of the U.S. in 1981, moving to Equitable Real Estate in 1984 as head of Corporate/Marketing Communications. In the 1980's he managed relations for several of the country's most prominent real estate developments including New York's Trump Tower and the Equitable Center. Earlier in his career, Miller was a reporter for Gannett Newspapers. He is a member of the Citistates Group and a board member of NYC Outward Bound Schools and the Center for Employment Opportunities.
