2017 Real Estate Annual Incentive Plan Report | FTI Consulting

2017 Executive Compensation Report: Real Estate Industry Annual Incentive Plan Practices

Annual Incentive Plan Practices for Executives at the Top 150 REITs

Real Estate | Corporate Finance & Restructuring

October 23, 2018

The FTI Consulting, Inc. Real Estate Industry Annual Incentive Plan (AIP) report provides an overview of annual incentive plan compensation practices at the top 150 publicly traded REITs. We believe that the top 150 REITs provide the best insight into current and emerging compensation trends, and accordingly, our report concentrates on these companies. Any reference to “REITs” only denotes the top 150 REITs included in the report.

The information in this report is based on our extensive review and analysis of compensation-related disclosure obtained through public documents filed with the Securities and Exchange Commission. FTI Consulting specifically has analyzed annual incentive information based on the most forward-looking pay packages for the Named Executive Officers (NEO) disclosed within the most recently filed proxy statements, plus any subsequent materials filed in a Form 8-K.

Executive Summary and Key Findings

Short-term annual incentive plans are generally the second largest compensation vehicle for senior executives, accounting for approximately 25% of compensation at the median in 2016. AIPs, generally payable in cash, are designed to reward employees for annual performance relating to key operational and financial measures, as well as individual performance and significant non-financial achievements. This report provides a summary of the design practices and structure trends of AIPs at the top 150 REITs.

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