CHICAGO-Last year was a banner year for public commercial real estate executives. According to new research by locally based FPL Advisory Group, compensation for performance in 2012 increased by 7%, the highest it has been since the firm began studying compensation levels.
But in an exclusive interview with GlobeSt.com, senior managing director Jeremy Banoff says the major hikes might be coming to an end. “REITs have consistently outperformed the markets over multiple timeframes so earnings have been relatively high,” he notes. “That said, we're likely to see a plateau for 2013.” But don't fear for executive welfare. Banoff reiterates that current compensation, “equals the highest levels observed across the industry since the study's inception.” That means 11 years.
Then there's Dodd-Frank. Banoff explains that the so-called Say-on-Pay provision--that allows shareholders to vote on the executive compensation program at public companies—is having its effect. “Five REITs have failed Say-on-Pay,” he says, based on votes taken at recent 2013 annual meetings. “That equals the total number of REITs that failed in both 2011 and 2012 combined.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
