Compensation Trends from 30 REIT Proxy Statements | FTI Consulting

The Early 30: Compensation Trends from the First 30 Filed REIT Proxy Statements and Notable REIT Compensation Highlights

Real Estate & Infrastructure | Corporate Finance & Restructuring

April 23, 2018

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The 2018 proxy season is in full swing with new proxy statements being filed on a daily basis. FTI Consulting, Inc. has analyzed executive pay levels for the first 30 self-managed REITs, the “Early 30”, that filed their proxy statements in 2018 and had comparable year-over-year data. The following provides a “sneak-peek” of REIT compensation trends based on the Early 30 REIT filers and additional compensation highlights from around the REIT world.

Compensation Trends at the Early 30

REIT

Although the figures above will likely change for the larger REIT population, trends at the Early 30 filers provide an initial indication that executive compensation at REITs is poised to increase by meaningful amounts from 2016 to 2017. Our analysis of the Early 30 also suggests that the perceived hyper-focus on CEO pay levels and reliance on long-term incentives is proving true, as year-over-year growth in CEO pay levels is muted in comparison to other NEOs and increases in LTI compensation far outpace increases in cash.

About FTI Consulting Executive Compensation and Corporate Governance Practice

The Executive Compensation and Corporate Governance practice at FTI Consulting has the unique capability to advise our clients on both routine and complex compensation and other strategic matters by leveraging our in-depth knowledge of the real estate industry and the issues directly impacting REITs. Our team of professionals have experience providing practical guidance on deal structuring, tax structuring, value-add governance changes and implementing compensation programs that are aligned with each REIT’s strategic plan and that rewards employees for creating tangible value.


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