A Better Year for REIT Execs' Pay

WASHINGTON, DC—Compensation for CEOs and other key REIT executives this year is expected to be more in line with the pay increases they saw in 2012 than with 2013′s levels. For all executives concerned, that’s probably a good thing, as compensation increases last year generally lagged those of the year prior, says FTI Consulting Inc.

Since most REIT compensation committees look to investor returns for directional guidance when making year-end compensation decisions, last year’s executive compensation increases “reflected the fact that the REIT market was relatively flat in 2013, with the MSCI US REIT Index up only 1% for the year,” compared to 17.77% the year prior, says FTI’s Anthony Saitta. Accordingly, total compensation levels for REIT executives increased within a range from 3% to 8% in ’13, below the ’12 increase range of 5% to 10%.