REIT Compensation

Hey guys, I'm interviewing with a large NYC-based REIT ($15b+ gross assets) for a VP role. Not much out there in terms of compensation data, so could you please share your insights across what a reasonable base, bonus, stock package should be?

30 Comments
 

in the current environment over the past few years at a VP level, the yearly issuance of RSUs you realize at vesting hasn't been great for a lot of sectors.  A typical annual grant may be $100k-$200k over 3-4 years at a VP level, but if the stock has been dropping you're not seeing the upside you could have seen from the past grants.  In a 4 year vesting schedule, if you're getting $200k over four years and you've been working there for over four years, you're getting $200k if the stock is flat. 

Let's say you worked at Boston Properties (no affiliation, just an example) and got grants from every September from 2019-2023 at prices of 136, 85, 105, and 80 with a 4 year vest.  This is an average grant price of 102.  Now in 2023, all four grants vest in the one year at the current price of 64.  This gives you $125k for this vesting period.

Getting a grant at a stock price low may be great for future years, but the problem is I've heard some REITS skipped giving stock grants for a year when the stock is at a low.  Sucks.

 

Not sure if you are responding to my comment, but I didn't weigh in on comp. I'm merely stating that most REITs use a different title structure, which is more in line with your general public company title hierarchy. So if you want to weigh in on a REIT VP comp package, it's important to recognize that this title is usually reserved for people with much more experience than someone at a fund where a VP may only have 5-7 years of experience...

 

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