Do REPE SA/VP/Dir expect base/bonus bump annually or is 'bump' inherent in carry?
As title asks, do 'mid-level' REPE pros expect base/bonus increases each year or is the comp 'increase' inherent in the carry you earn that's vesting each year? If it's inherent in the carry, what # of years would need to pass to command a base/bonus increase? Because if you accepted a comp package in 2020-2022 and are flat on base/bonus, you're 20-30% poorer in real terms, and given the environment, that carry liquidity event is far off for most.
Or do you expect base/bonus step-up only when a new fund is raised?
Curious to hear expectations/experiences of others.
TYIA!
Bit of a shit answer, but it depends on the shop. Some give you minor increases based on year, others based on fund, some have up or out structures where you get promoted or laid off, and others will tell you that you’re lucky to have a job right now.
Echoing above, my sense is the convention varies, especially with it being an employer's/hirer's market (and employees have little/no leverage). But man getting the same cash comp in ~2021 as ~2026 is like going from filet mignon to a hot dog. Inflation is such a killer. Remember when we were taught in school that real estate was an inflation hedge? LOL riiiight
Lesson to the young bucks: make hay while the sun is shining, be greedy, never leave a dime on the table, then chop wood and carry water. namaste
The truest advice I've seen on here.
Yes on average about 3%-5% per year depending on inflation. Also have randomly gotten larger raises when they did a “market review” and decided they were underpaying people compared to competitors.
What is this carry you speak of...
Expect a 3%-5% bump every year in base, some increase in my target bonus %, and then I'd expect a relatively significant raise in all categories at every title bump, call it 30-50%. Also expect my carry allocation to increase at each title increase (would expect it to roughly double).
The kids keep talking about it but I'm not aware of it either......
30-50% raise in base / bonus at a SA > VP title bump or a VP > director title bump feels high to me
Probably fair in this environment. I'm a VP at $225 base + 50% target bonus + ~30% in corporate profit share (on a vest that pays out over 3 payment across ~2 years) + a carry target that is roughly ~$1m in our VA fund. Expecting to go to SVP soon, and my understanding is that comps will go up to ~$250k base + 75% bonus + ~90% in corprate profit share. That's roughly a 50% increase in target annual cash comp. Also expect the carry allocation to each fund to roughly double.
Obviously titles in RE are variable, but I'd put the title equivalent at my shop as roughly par to an MD.
I’ve only received a base cost of living adjustment once in the last 20 years. My bonuses have increased every year instead.
The big base increases have always been at promotion/moving firms (the % are getting smaller, with my last one being 25%, but that is because the nominal dollars are bigger).
Anyone in Europe also caught by target bonus 30%? I’m VO how do u get out of that. YE review coming up. Working for developer.
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