NAREIM/FPL Executive Compensation Pulse Survey

Transcription

1 NAREIM/FPL Executive Compensation Pulse Survey Participant Report of Findings Fourth Quarter, 2013

2 2013 NAREIM/FPL Executive Compensation Pulse Survey Introduction NAREIM and FPL Associates L.P. are pleased to present the results from the 2013 NAREIM/FPL Executive Compensation Pulse Survey. This survey report represents a custom cut of our broader industry survey, and includes only those firms with significant real estate investment management platforms. The objective of the Compensation Pulse is to provide real estate executives with insights into compensation trends for year-end 2013 and projected changes for The survey reflects compensation trends specifically for C-suite level executives. We extend our sincere appreciation to all participating organizations for providing valuable information. As always, please do not hesitate to provide any feedback to improve this initiative. Topline Findings Eighty-two percent (82%) of participants reported improved company performance over 2012 Approximately half of the C-suite executives included in our study did not have a change in base salary for 2013; under 1 reported a salary increase of over 5%; about one-third of the salary increases reported were in the 2.6-5% range; very few reported a decrease in base salary Year-over-year changes in annual cash bonuses varied widely across the sample, however, most reported no change or mild increases Just under one-half of executives are anticipating an increase in the value of their 2013 LTI awards from 2012; over one-third do not expect material changes, while few reported an expectation of LTI decreases Quantitative Survey Methodology In early November 2013, FPL Associates sent out a survey questionnaire for the purpose of gathering information regarding year-end compensation trends for executives within the real estate industry FPL gathered and analyzed the responses, then completed a custom cut of the data exclusively for REIMs to develop this summary report Due to company policies and/or unique aspects of their operations, not every participating company was able to provide information for every survey question; in cases where certain participants did not respond to a particular question, they were excluded from the reported statistics related to that question 2013, FPL Associates L.P. 2

3 Participant Demographics and Performance All participants are heavily involved in real estate investment management (REIM) activities What is your company s primary property focus? How do you define your company's performance for performance/fiscal year 2013? Diversified 5 Best year ever 9% Office 2 better than % Multi-family Residential better than Retail 9% The same as % Industrial 3% worse than % Other 3% worse than % 2013, FPL Associates L.P. 3

4 Chief Executive Officer Base Salary Actual % Change in Base Salary: Anticipated % Change in Base Salary: % % No Change 59% No Change 48% Decreased Decreased 2013, FPL Associates L.P. 4

5 Chief Executive Officer Annual Incentive (Cash Bonus) Projected 2013 Compared to Target Projected 2013 Compared to Actual 2012 Maximum Bonus 22% 32% Same 36% At Target 43% 17% No Bonus 9% No Bonus 7% 2013, FPL Associates L.P. 5

6 Chief Executive Officer Long-term Incentive 86% of participants have a long-term incentive program in which executives are eligible to participate Projected 2013 Compared to Target Projected 2013 Compared to Actual % 3 29% At Target 3 Same 38% 5% 5% No Award/Grant 25% , FPL Associates L.P. 6

7 Chief Financial Officer Base Salary Actual % Change in Base Salary: Anticipated % Change in Base Salary: % % % % % No Change 4 No Change 33% Decreased Decreased 2013, FPL Associates L.P. 7

8 Chief Financial Officer Annual Incentive (Cash Bonus) Projected 2013 Compared to Target Projected 2013 Compared to Actual 2012 Maximum Bonus 17% 39% 22% Same 36% At Target 3 22% No Bonus No Bonus 2013, FPL Associates L.P. 8

9 Chief Financial Officer Long-term Incentive 86% of participants have a long-term incentive program in which executives are eligible to participate Projected 2013 Compared to Target Projected 2013 Compared to Actual % 1 29% 33% At Target 38% Same 33% 5% 1 No Award/Grant , FPL Associates L.P. 9

10 Chief Operating Officer Base Salary Actual % Change in Base Salary: Anticipated % Change in Base Salary: % % % % No Change 53% No Change 39% Decreased 5% Decreased 2013, FPL Associates L.P. 10

11 Chief Operating Officer Annual Incentive (Cash Bonus) Projected 2013 Compared to Target Projected 2013 Compared to Actual 2012 Maximum Bonus 6% 5% 6% 38% 17% Same 38% At Target 4 17% 1 5% No Bonus No Bonus 2013, FPL Associates L.P. 11

12 Chief Operating Officer Long-term Incentive 86% of participants have a long-term incentive program in which executives are eligible to participate Projected 2013 Compared to Target Projected 2013 Compared to Actual % 27% 31% At Target 4 Same 31% 13% 13% No Award/Grant 2 19% 2013, FPL Associates L.P. 12

13 Other C-Suite Executives Base Salary Actual % Change in Base Salary: Anticipated % Change in Base Salary: % % % % % No Change 31% No Change 26% Decreased 3% Decreased 2013, FPL Associates L.P. 13

14 Other C-Suite Executives Annual Incentive (Cash Bonus) Projected 2013 Compared to Target Projected 2013 Compared to Actual 2012 Maximum Bonus 12% 18% 39% 18% Same 3 At Target 36% 18% 12% 7% 6% No Bonus No Bonus 2013, FPL Associates L.P. 14

15 Other C-Suite Executives Long-term Incentive 86% of participants have a long-term incentive program in which executives are eligible to participate Projected 2013 Compared to Target Projected 2013 Compared to Actual % 1 26% 29% At Target 37% Same 36% 7% No Award/Grant 19% , FPL Associates L.P. 15

16 Thank You We would like to extend our sincere appreciation to all participating organizations for providing valuable information. We would not be able to produce such a detailed and robust report of findings without your participation. We welcome your comments and feedback on our survey process, scope, and approach. Contact Please direct all inquiries regarding this study to: Gunnar Branson Chief Executive Officer NAREIM 410 N. Michigan Ave. Suite N 30 Chicago, IL Phone: (312) gbranson@nareim.org Josh Anbil Senior Managing Director FPL Associates L.P. 191 North Wacker Drive, Suite 2850 Chicago, IL Phone: (312) janbil@fplassociates.com 2013 FPL Associates L.P. All rights reserved. No business or professional relationship is created in connection with any provision of the content of this document (the Content ). The Content is provided exclusively with the understanding that FPL Associates L.P. is not engaged in rendering professional advice or services to you including, without limitation, tax, accounting, or legal advice. Nothing in the Content should be used in or construed as an offer to sell or solicitation of an offer to buy securities or other financial instruments or any advice or recommendation with respect to any securities or financial instruments. Any alteration, modification, reproduction, redistribution, retransmission, redisplay or other use of any portion of the Content constitutes an infringement of our intellectual property and other proprietary rights. The views and opinions expressed by each participants are such individual s own views and are not necessarily the views of FPL Associates L.P. or such participant s employer. 2013, FPL Associates L.P. 16