Specialist Insight: REIT Compensation Levels in 2017

Katie Gaynor, managing director, FTI Consulting

Global business advisory firm FTI Consulting reviewed and analyzed compensation-related disclosures in 2018 proxy statements for 160 publicly traded REITs. The study found slightly higher year-over-year pay increases in 2017 REIT executive compensation levels despite lower one-year total shareholder returns in the industry.

Focusing on the pay practices at publicly traded REITs, the study revealed that executive compensation increased 7 percent in 2017 compared to 5 percent in 2016. Moreover, compensation transparency has become an important trend, gaining traction over the past few years. Many of the decisions and changes to REIT compensation programs are rooted in a desire to add more transparency into the process.

Katie Gaynor weighs in on fundamentals, bonuses and REIT compensation market trends in a discussion with Commercial Property Executive Associate Editor Laura Calugar. This is the first podcast in a quarterly series that FTI Consulting specialists will be participating in over the next months.  

Image courtesy of FTI Consulting