Compensation Strategy

As the real estate markets continue their slow but steady recovery, senior professional and executive level compensation is increasingly top of mind for employers. The great recession put a lid on most cash packages, and in some cases there was a retrenchment in salaries and bonuses. In addition, wholesale job cuts put a large population on the street, many of whom are still not repositioned in their area of expertise, and nor have they returned to pre-recession compensation levels. These market situations dampened compensation across the board for at least three years. For those who weathered the storm in their current role or have found a new opportunity, compensation levels have generally returned to 2007 levels. Interestingly, this year more employers are of the view that they should take a more proactive and defensive approach to cash compensation for top performers as competition for talent returns for certain roles. One area of note is development which was dormant for years and is now back on track. On the other hand, in sectors such as homebuilders where the recovery is slower and more spotty, compensation continues to lag the go-go days prior to 2008. The net of the story is that top performers are doing just fine thank you, regardless of what sector they play in.

Tony LoPinto is the Global Sector Leader of Korn/Ferry International’s Real Estate Practice and founder of SelectLeaders. The views expressed in this article are the author’s own.