REPE VP Comp and Bonuses
Just heard a pretty staggering comp number for a new VP hire at a MF (700k+ all in). My impression was that VP comp was significantly lower
Wondering what you guys are seeing (NYC, LA). And how comp is structured base vs comp.
Did you get clarity on all cash vs cash and carry / deferred?
I call BS. That might be the number if you consider future carry, but that is not the year one comp for a new hire who has not yet contributed to a firm.
Halve the number, and maybe you’re closer to guaranteed year one comp.
Question.... is this VP rank after or before Director? That is not universal, like was this person an associate before VP, or Director before VP?
They're usually the same from my experience. Firms usually go Ana-Aso-AVP-VP-SVP-EVP or Ana-Aso/AsoDirector-Director-Senior Director-MD.
Haven't seen firms where there's both VP and Director. Seems silly to have both titles.
our firm and a lot of developers have it as Analyst, Associate, Manager, Director, VP, SVP, EVP, C-level. That is more traditional like big corp firms, have seen many real estate firms follow suit (like not trying to copy wall street with VP after Assoc). But i'm pretty sure many I-banks and brokerages promote VPs to Directors/MDs.
This is why trying to figure out shit by just getting someone's title is really difficult
Don’t have insight on the split Re: cash/carry/preferred.
VP is before director at this firm. Interested where VP comp is now since I’ve heard this
Has to include carry because I can't imagine any of the funds paying 700k+ in cash to any new hire that is 5-6 years out of school.
It is probably more like 450k-500k cash with the rest in carry.
Out of business school or undergrad?
Undergrad.
VPs at my shop are between 400-800k cash depending on how skilled they are at managing politics. Can't imagine a 5-6 year exp person getting 700k+ without a history at the firm, but 400-600k cash would be a reasonable expectation
Up to 800, wow. How many years of experience and are you at a Megafund?
10-12, probably some title deflation there to be fair. Larger fund, top 40 on the fundraising list
Think the thing to remember is that VP/Director/Principal can cover a whole lot of years in a career. It could be from 26/28 all the way to 40+ when you make MD (or go off on your own).
So having the wide range isn't that crazy. At my shop Principal base salare ranges from 200 to 450k, which means that total cash comp can range from 400 to over a million.
Data point here for a mega fund in a major market, $225k base, 150% bonus, ~2% of the fund's carry. 7+ years of experience.
How much cash is that 2% carry usually and is 150% bonus the average?
~$3B fund, you do the math.
Director --in our shop this is the title before MD-- MM Fund Major market $250k base/100% bonus/2-4 pts in funds depending on involvement
That’s awesome. How many years of experience?
When you say 2-4 points, is that 2-4% of the GP split? So If the GP gets 20% fund profit split, your 2% would be a 0.4% fund profit split?
^^ ~10ish years of experience in the industry ~ 1 year in the role
^Yes it applies to the fund's promote
Data point: Senior Acquisitions Officer at a $50B++ RE investment company. Comp was $700K, 50/50 base and bonus, no carry. Role was based in LA (non HQ) and required a minimum 10 years acquisition experience.
What does senior director mean? At some firms, “Director” is the role after associate. So is this a senior mid-level guy? (In my mind, senior VP?)
Or is this the top role before head of Real Estate acquisitions or whatever it’s called at this company
For this company, it was a senior role (10+ years experience) for (i) a specific market and (ii) a specific investment strategy that worked under the direction of the department head. All shops are different and to be honest, titles don't really mean much unless you understand the hierarchy of the organization. Depending on the company, it could mean you oversee a specific market, manage few analysts or associates, and either lead or support (under senior leadership) the investment committee process.
Sounds like CBREI
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