Podcast: What’s Changing in Executive Compensation Trends
Jarret Sues, Managing Director of the Corporate Finance & Restructuring segment, provides details about executive pay levels for the first 30 self-managed REITs that filed their proxy statements.
Initial trends for the 2019 REIT proxy season compared to last year are notable for larger increases in CEO compensation—5.3 percent in 2019 vs. 3.3 percent in 2018—but smaller overall—5.7 percent for all NEOs in 2019 vs. 8.3 percent in 2018.
Although increases this year were quite balanced between cash and long-term incentive compensation—6.3 percent and 5.5 percent, respectively—they represent a meaningful change in how REITs allocated additional pay, as 2018 included a modest 1.4 percent increase in cash, but a 14.8 percent increase in LTI compensation.
In a podcast with Commercial Property Executive Senior Associate Editor Laura Calugar, Mr. Sues explains these changes, talks about how proxy statements can act as marketing tools and reveals his predictions for 2020.