We are getting to YE and I was curious as I am sure many people out there are who are in the similar shoes about YE Bonuses and Base Salaries.
I graduated in 2012 and have worked with three firms. The 1st firm was in Europe and I spend roughly 11 months there. The 2nd firm was a boutique REPE firm where I spent 1.5 years and my compensation structure was a base with a deal bonus that was a % of each equity fee along with a small participation on the back end. I recently joined a REPE firm as an AVP about 6 months ago.
So this is the 1st job where I have a standard base salary with a YE discretionary bonus. After initial conversations with my firm they said to expect 50% to 65% on a good year at the firm. This is based on a base salary in the low six figures.
Curious as to what is normal in terms of % of bonus at other REPE jobs and what is standard in terms of a YOY raise on salary or should I even expect one.
Based on conversations, personal experience, and survey results I've read, that type of bonus seems to be middle of the range for an associate/avp position at a repe firm. The bonus can range from 10% - 100%+. The weight that the bonus has in total comp increases as you become more senior. In terms of salary increase, in a non-promotion year, I would say a few percent bump is normal. Again, these are not hard facts, just my personal observations. Generally speaking, total comp can vary significantly from one firm to another in this industry.
I work for a smaller REIT as a 1st year associate: $90-$100k base and expect about a 40%-50% bonus. Raise will be about 5%-10%.
I'm working at a larger REIT in a major market. As a first year analyst with one year of previous work experience, I will make 90k as my base with a 50-60% bonus.
Have you gotten your bonus yet?
Greenwich7690 AcquisitionsGuy
How do you guys like working at a REIT? Did you work in REPE before? What are the main differences?
For me, working at a REIT is a pretty good gig, but not my ideal final landing place. The two downsides are: 1) you are usually investing in fairly risk-free assets which can get boring after a while and 2) because of the investment profile, comp is lower than working in REPE or development.
At the higher end (i.e., better funds) for REPE the bonuses are typically at 80-110% but base salary may be slightly lower than REITs or other investment managers.
For major markets on the West Coast, REPE associates are typically $90-120K + 50-100% bonus, so a pretty wide range of $135K - $240K all-in.
I can't speak toward an AVP position as I've never seen it outside of brokerage houses, but I think you are doing well for 2.5 years of experience. It's easy to get lost in the weeds of "comp/prestige", just be mindful about what: -skills they are teaching you -networks you are building -and ultimately what makes you as an employee a unique asset for a fund
Quick Edit - if someone is doing REPE expecting make crazy money at 26 you should readjust expectations. Property NOI does not 5x in a few months the way EBITDA can
This would vary with the type of investments..I'd imagine a hotel repe/reit will pay better than industrial/commercial office given the risk profile of the assets you're buying
Gene Parmesan Appreciate the background info and definitely agree on being mindful on the learning curve aspect especially being early in my career.
What is your background? Are you in REPE as well?
I've been doing acquisitions for a REPE/Investment Management firm for about 2.5 years, the last 8 months have been as an associate.
Can't put comp on the forum as some coworkers and friends know the man behind the Gene P. mask, but happy to answer questions on PM
Development fund AVP Investments/Acquisitions - $150K base, $100k bonus (2015)
zacksc11
Congrats if I remember correctly you used to work in BB IB. Are you happy you made the switch over to REPE?
In the southeast US, an associate level employee (4-5 years out of UG) at more entrepreneurial/"prestigious" development fund, may expect to earn $90k-$120k base with development fees/bonus being 30%-80% of base with smaller firms offering a piece of the promote (fairy dust until its not).
In general, the bump to analyst to associate is where you see a relatively large increase in comp
What should an entry-level analyst expect as far as compensation structure in the southeast?
For a 1st year analyst I'd say 50-60k base with 10-20% bonus. It's not spectacular but the experience and future earning potential is worth it IMO.
Definitely depends on what market in the Southeast... In Atlanta, I would think $50-$75 base, as the cost of living is significantly higher than some bumfuck town in South Carolina. However, the Bonus structure in RE is always tied to how many deals your team closes. It could be 10-20% or much, much higher than that.
I would be in Atlanta. But I also have no experience in the field and I'm 25. I have a solid nest egg(w/ 0 debt obligations) so not looking to break the bank coming in, I would just like to earn enough for living expenses and most importantly gain experience.
After say 2 years in the analyst position if I get bumped to associate I assume $75-$120 would be expected?
sure. I'm assuming that 99% of users on here live in the largest cities in their respective county
I disagree with that 99% assumption. Atlanta is the 39th largest city in the US (based on City population). I would hardly consider that one of the "largest cities in the US". If this were a banking forum, I would certainly agree with you.
Atlanta is the 9th or 10th largest MSA in the US, the city itself is pretty small.
Are you kidding? You realize that the ATL metro area is much bigger than Atlanta proper, right? Here: https://en.wikipedia.org/wiki/Atlanta_metropolitan_area Estimated at over 6.2 million people, 3rd largest metro in the Southeast outside of South Florida and DC. 9th in the US. I'm pretty sure that qualifies.
Sorry to hijack =)
No one likes a hijacker!
In 2015 I was an associate with 100K base + 75K bonus. Recently promoted to AVP with a 125K base for 2016. My bonus is a share of a pool that depends on the activity of the company (only increases to my share are discretionary). I spent a couple years in brokerage and have three years experience with my current firm.
Family RE company in NYC.
SHB
Not yet we get ours in Feb but will know soon enough. How about you?
Also not sure if you are comfortable asking this or you can PM me. But what is your take home after tax in NYC curious because I am on a similar comp level but in Seattle. Also how much do you save at the end of the day after expenses I know NYC rent must be significantly higher.
But I spend roughly $3.5k per month on expenses and take home about $2.5k-$3.5k per month after taxes and expenses.
Whats great about my company is we get bonuses in December and a true-up in January for activity in December. So I've gotten 90% of my bonus and just waiting on my true up for the month of December.
The expense question will probably not help much, I try and live beneath my means as much as possible. But I can tell you at the end of the day my total taxes are about 35-36% as a NYC resident.
"But I spend roughly $3.5k per month on expenses and take home about $2.5k-$3.5k per month after taxes and expenses."
are you saying you live at a deficit all year until bonus comes in?
That's what it sounds like. I had to re-read also. My other question would be if you're not in brokerage why does your (presumed salaried) income fluctuate so much on a monthly basis?
Edit: because words.
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