2016 NAREIM Compensation Survey Marketing Document …€¦ · Title: 2016 NAREIM Compensation...

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2016NAREIMCompensationSurvey

TheNationalAssociationofRealEstateInvestmentManagers(NAREIM)isonceagainpartneringwithFPL

Associates to conduct the 2016 NAREIM Compensation Survey, which is widely considered the most

comprehensive of its kind within the real estate investmentmanagement (REIM) industry. Unlike other

surveysinthemarketplace,thissurveyprovidesNAREIMmembers/participantswithcustomized,real-time

compensationtrendsanddatathatcanbeusedatalllevelsoftheorganizationtoassistwithhumancapital

decisions.

WhyParticipate?

Compensationcontinuestobeanemphasisatinvestmentmanagers. TheNAREIMCompensationSurveyhas

servedasavaluableresourceforparticipantsandmemberorganizations,providinganumberofbene0its:

• Thesurvey’srealtimecompensationtrendsandpositionalinformationhashelped0irmsreactandadjust

theircompensationprogramtothechangingeconomicenvironment

• Information helps 0irms stay competitive in all areas of compensation (0ixed and variable pay)which

resultsinincreasedemployeeretention

• Questionsarerelevantandattunedtothelatestissuesfacingorganizationstoday

• Position and department information is comprehensive and usable by organizations of all sizes,

structures,andstrategies

Thesurveyquestionnaireiseasytocompleteandthecomprehensivereportofresultsisfreetoparticipants.

2016SurveyComingSoon!

This year’s survey will be available to participants on April 4, 2016. Survey questionnaires and

compensationworksheetsareduetoFPLbyMay6,2016withresultspublishedinAugust2016.

Questions/Comments

Ifyouhaveanyquestionsaboutthisyear’ssurvey,questionnaire,orduedatepleasecontactus.

GunnarBranson

President&CEONAREIM

(312)884-5184

gbranson@nareim.org

JoshAnbil

SeniorManagingDirector

(312)893-2315

janbil@fplassociates.com

LindsayPankratz

SurveyDirector

(312)893-2337

lpankratz@fplassociates.com

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2015SurveyOverview

The2015NAREIMCompensationSurveyprovidedavarietyoforganizationalandcompensationinformation

andtrendsacrosstheREIMindustry,including:

• Staf0ingandhiringtrends

• Financialperformancetrends

• Compensationdesigntrendsandpractices

• Positionalrangesbycomponent(e.g.,basesalary,annualincentive,andlong-termincentive)

Datawasalsocollectedonanticipatedchangesandtrendsincompensationprogramdesigngoingforward,

includingpromote/carriedinterestawards.

KeyFindingsfromthe2015Survey

� Financial performance continued to improve at most REIMs with increased revenue at 78% ofparticipantsandgenerallysimilarresultsreportedforEBITDA(67%)andgrossAUM(76%)

� Most participants (91%) increased salaries at year-end, making 2015 the 0ifth consecutive year ofwidespreadsalaryincreasesintheREIMsector

� Atmost 0irms, salary increases in 2015 continued to grow (4.5% on average) in comparison to thosereportedforthepastfewyearsandtheREIMsector’shistoricalaverage(3-4%)

� Most participants (70%) anticipated increasing salaries in 2016, with the average expected increaseamongthese0irmsbeing3.7%

� Bonusesforperformanceyear(PY)2014increasedat71%ofparticipants,whichisgreaterthanPY2013(61%)butslightlybelowPY2012(76%);amongcompaniesreportinganuptickinbonuses,theaverageincreasewas20%(similartothe19%reportedin2014)

� Slightly more than one-third (36%) of participants expected PY 2015 bonuses would exceed bonuspaymentsforPY2014(downfrom51%reportedin2014)

� Nearlyhalf(48%)ofparticipantsindicatedlong-termincentiveeligibilityexpandedattheir0irmfromPY2014toPY2015

� Lookingahead,most(53%)participantsdonotexpectPY2015LTIawardstodiffermateriallyfromPY2014awards

� Nearlyhalf(45%)ofparticipantshaveapromote/carriedinterestplan,similartothe46%lastyear,withthese plans most commonly used for value-add and opportunistic commingled funds and separateaccounts

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2015ParticipantDemographics

The2015NAREIMCompensationsurveyhad47participatingorganizations,re0lectinganimpressive55%

participationrate.Intotal,theparticipatingcompaniesinthe2015surveymanageover$940billioninassets.

NumberofFullTimeEmployees GrossAssetsUnderManagement(AUM)

2015ParticipantCompanies

AEWCapitalManagement

AmericanInternationalGroup(AIG)

AmericanRealtyAdvisors

Amstar

BentallKennedy

BerkshirePropertyAdvisors

CBREGlobalInvestors

ClarionPartners

ColonyRealtyPartners

CommonWealthPartners

CornerstoneRealEstateAdvisers

DeutscheBank

HartRealtyAdvisers

Heitman

Hines

IDSRealEstateGroup

InlandRealEstateInvestmentCorporation

IntercontinentalRealEstateCorporation

InvescoRealEstate

Jamestown

JPMorganAssetManagement

KimcoRealtyCorporation

LaSalleInvestmentManagement

LoweEnterprisesInvestors

ManulifeFinancial

MesaWestCapital

MetLifeInvestments

MetzlerRealtyAdvisors

NationalRealEstateAdvisors

NewYorkLifeRealEstateInvestors

PCCP(Paci0icCoastCapitalPartners)

PearlmarkRealEstatePartners

PMRealtyGroup

PrincipalGlobalInvestors

Prologis

PrudentialRealEstateInvestors

Saro0imRealtyAdvisors

StockbridgeCapitalGroup

TDAInvestmentGroup

TIAA-CREF

UBSRealtyInvestors

USAARealEstateCompany

WaltonStreetCapital

WatertonAssociates

ZellerRealtyGroup

GrossAssetsUnderManagement(AUM)

Under 50

Employees

22%

50 - 250

Employees

33%

Over 250

Employees

45%

Under

$2.5B

16%

$2.5B -

4.99B

18%

$5B - $20B

27%

Over $20B

39%

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SurveyDepartments/Positions

Thesurveyreportincludedcurrentcompensationpracticesfor148positionsacross28departments.Within

eachdepartment,wetypicallyreportcompensationrangesforthefollowinglevels:(1)Head,(2)Senior-level,

(3)Mid-level, (4) Associate, and (5) Analyst. The compensation datawas then organized by position and

brokenoutintothefollowingparticipantcategories:Aggregate(allcompanies),AUM,FundStrategy/Account

Type,andNumberofFull-TimeEmployees.

Survey Departments

Executive Management

InternationalPositions

Accounting—Corporate

Accounting—Portfolio/Fund

Accounting—Property

Administration

AssetManagement

CapitalMarkets

InvestorRelations/CapitalRaising

InvestorReporting

Construction

CorporateMarketing/Communications

Development

DueDiligence/Underwriting

Engineering/Security

Finance

HumanResources

Leasing

Legal/Compliance

PortfolioManagement

PropertyManagement

Research

RiskManagement

Technology

Transactions

Valuations

Debt

REITSecurities

• ChiefExecutiveOf0icer(HeadofRealEstate)

• ChiefOperatingOf0icer

• ChiefFinancialOf0icer

• ChiefInvestmentOf0icer

• ChiefAdministrativeOf0icer

• ChiefInformation/TechnologyOf0icer

• ChiefAccountingOf0icer

• GeneralCounsel

• RegionalChiefOperatingOf0icer/RegionalEVP

• ProductorBusinessLineChiefOperatingOf0icer/EVP

• HeadofNewBusinessInitiatives/ProductDevelopment

• HeadofRealEstateLending&DebtInvestments

• SeniorPortfolioManagementProfessional–Debt

• SeniorOriginations/ProductionProfessional

• Mid-LevelOriginations/ProductionProfessional

• Originations/ProductionAnalyst

Example Survey Positions

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ExamplePagesfrom2015Report

Thepagesbelowareexcerptsfromthe2015surveyandillustratethetypesofanalysisandinformationthat

arepresentedinthereport.