CPE Podcast: What’s Changing in Executive Compensation Trends

FTI Consulting Managing Director Jarret Sues provides details about executive pay levels for the first 30 self-managed REITs that filed their proxy statements. Tune in to find out how REITs allocated additional pay in 2019!
Jarret Sues, Managing Director, FTI Consulting
Jarret Sues, Managing Director, FTI Consulting. Image courtesy of FTI Consulting

FTI Consulting has recently released The Early 30—a look at compensation trends from the first 30 filed REIT proxy statements. The report provides an initial indication of overall executive compensation trends in the REIT industry based on the analysis of Early 30 REIT filers.

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 new podcast of the FTI Consulting series with Commercial Property Executive Senior Associate Editor Laura Calugar, Managing Director Jarret Sues explains these changes, talks about how proxy statements can act as marketing tools and reveals his predictions for 2020.