I've been pursuing LinkedIn to see how the market is. Looks like every position above associate is base pay $200k-$350k...with most of the group falling in the $200-$250k. Now this is for "Principal"/VP/Dir/Head of positions. What is going on with the comp? It could be a bank, developer, PE fund. Does nobody make more than $400k in NYC except ED's. Now I'm assuming the bonus in these, not listed of course is 50%, would that seem accurate.
Now that is not the gripe. The gripe is that people were making this money 20 years ago while the world got more expensive.
I mean this statement is the crux of what many people are upset about in the world, especially corporate. CEO & Senior exec pay packages have increased a great deal whereas everyone else’s pay is either stagnant or declining when adjusted for inflation.
Being in real estate doesn’t help either because all you hear is stories about having to “pay your dues” or “sacrificing money for knowledge”. Corporate PE pays their analysts and associates very well despite those roles not being exactly revenue generating centers but they do add value.
Very true. The level of inequality has gotten totally out of hand. I switched to RE from energy and am making less in 2024 in nominal dollars than I did in 2019 at a job in energy with more responsibility and oversight. Hard to stomach with runaway inflation and all the bosses retreating to their $5-10m ski houses or country estates.
Is your wife colombian by any chance?
Yep. All I say is when you dig deeper and actually talk directly to these companies or the recruiters they work with, the real numbers can and usually are substantially higher. At least in California, the low numbers are due to pay transparency laws but employers try to keep this as opaque as possible with systemically low numbers.
That said, what can someone expect 10-15 years in heading acquisitions (senior VP) at a large GP? Rhodes associates has $400k cash comp (base + bonus) at the low end, not including carry
What are associates getting paid? I feel like I'm getting shafted
Associates make $250-$400k at my firm all-in (large REPE & RED in NYC).
To OP...I know roles where base is $150k and bonus / incentive comp is $1mm+. So you're wrong in assuming these roles are all 50% bonus.
That's what's up. Definitely the top 5% of REPE jobs I'd imagine. I'm at a PERE 25-50 firm at $225-$300K. Not in NYC/SF/LA though.
I guess I'm not totally shafted, all in as 2nd year associate, 205k and not in NYC, but still a HCOL. Had great raise first two years then last two have been awful based on the CRE market. This year our production and deal flow is up, so hoping back to the 5-9% annual bump without a promotion as I'm a year and a half out from hopefully director
50% bonus seems low which is where you might be off. I'd assume 100% minimum at those levels with some going 200%+ depending how high you get on the ladder. I'd also expect banks to be lower and developers to pay less but give chunky promote upside
Even in banking a >100% bonus is not uncommon, plus stock. The base pay is annoyingly low but top performers can do well.
Maybe IB, but not Commercial/Corporate....right? Thought the debt groups were at 35-50% bonus?
Can anyone confirm
Commercial/Corporate goes higher than 50% bonus. I have coworkers bringing in around 500K depends on if you stay in the credit side or go to relationship management.
I’m a VP. I’m south of $200,000 base. I’m at $190,000.
Well, your assumption on split between base and bonus is wrong. For example, my boss’s base salary has stayed stagnant at $250k for the past ten years, but his overall comp has increased exponentially because his base and carry allocations have increased so much
It's my understanding that in real estate, cash comp tops out at around $300-400k when you include base and bonus. The real money is made on promote/carry.
Agreed, kind of... but what about financial institutions such as life insurance, hedge funds, or banks
Those institutions offer (company) performance-based payouts as well. Like REPE firms (or conventional PE firms), if the bank has a great year, you make a ton of money. If not, you just have your cash comp. It's not really something you quantify on a job posting.
I've never seen an REPE post have "$2mm estimated carry!" in their job postings. Why would you expect a life insurance, hedge fund, or bank to include that?
11 YOE and my total comp is $500k / 50% salary + 50% bonus. Also have promote that I value at a few million. Will be interesting how it goes at this YE. Will be asking to move towards $550k - $600k.
REPE firm on the West Coast
What market?
you really won't get much higher on base. i talked to a recruiter and was told even as an MD at a mega fund your base is going to be 300k +/- with bonus target at ~200% or so and then carry. About $1M cash comp excluding carry - again this is for MD at a mega fund.
CRE comp just isn’t that great at the junior level. Unless you make it to a megafund as an analyst (15-20 spots per year) or at a top CMBS/broker, you’re not gonna be making that much. Just the reality of the industry. If you want to get paid as an analyst, just go to a REGAL group or honestly any IB group. Best place to get paid early on and still make it to a large fund that pays exceptionally well.
Funny to start an RE comp thread and set the baseline at $200k...
...It's not realistic. Most Directors or VP's on the ownership side make about $170k - $200k base. Bonuses can be 30% - 50%.
Most Analysts, Associates, and "Assistant VPs" (so much title whoring in RE) do not make more than $170k base. At the big shops (cough *Hines* cough) associates are given $140k base with a 30% bonus.
Rhodes associates comp survey would tell you much different. Your VP/Director numbers are low
Easy. Cash comp I think flattens out around $400k IN GENERAL. Then the fees / promote/ stock kicks in at 2,3,4x that.
Know multiple people at senior positions who make $250-300 base plus 100% bonus then deferred long term comp (promote or stock if a reit). $600-1m. Problem is, not many of these roles around. They are the head of acquisitions/development roles for the region.
Very true. I’m at a small GP focused on industrial. Acquisitions role. I’m at around 260 base and bonus. Throw in my share of fees and promote, I was at 500k to 600k all in last year and will be close to it this year (slightly under).
would you mind sharing what firm?
Glad to see you industrial boys are still crushing it
How many deals do you personally close a year to get to that comp? 260 base/bonus so you're saying another $240k - $340k from acq fees and promote. What portion of that is from acq fees and what portion is promote?
What’s the typical comp for a VP in an asset management role within RED? Is the bonus generally around 50%?
Am I underpaid? Salary $138k and bonus of about $65-$100k depending on the year. Experience is 10 years in a HCOL area. Title is associate and work for a developer. Overall it’s nice making other people rich but at some point I have to hit a shot for myself too
Yes, tbh you are underpaid.
Difficult question to answer. IMO an associate pulling in $200k-$240k at a developer is great stuff. Not underpaid at all. I think my best ever associate year was right around $200k, but that was also when I had 2 years of development experience and only like 4 years of total real estate experience + 2 years of grad school overall, so 6 years out of college.
The bigger question is why you are an associate 10 years in? If it's because you got into development late in your career and are "behind" in your grind, you're the fucking man and I admire you and you should keep on the path because it'll come. If it's because you have been an associate for 7-8 years, you need to decide what you care about more: making a salary that can support a good life or career success. No one who makes $200k-$240k a year will ever be poor, or shit even middle class, but you're also giving up on the ability to make much more and continue to progress, if that is the case.
This is a difficult question to answer but I've been at the same firm since my college internship senior year so it’s been a long time (11 years) and the people are really great. Its not a traditional shop and titles don’t really matter here. The best part about it is that I have ample time to work on my own deals which is great and the goal from day 1 has always been to go out on my own. With that being said I want to mitigate the risk of this plan not working out and I don’t want to be stuck 15 years in and in a position with low salary and title that impacts my career forever but that’s the risk I guess I need to take. I can’t start a new job now Im in too deep with my own deals going on so I either continue fighting for the dream or implode
No one wants to acknowledge Rhodes associates? Way higher than what many in this thread are quoting. And from personal experience.
I can poke holes in this but it seems right in a general sense
I’d say it’s relatively correct for majority of markets outside of NYC, SF, & LA. In those cases, seems like Associate comp is more in line with VP on the list and VP more in line with Director.
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