Hey guys, long time listener first time caller here.
I've just been offered a new job at a small but successful development shop and they've asked me to send them over what I expect in terms of comp. I'm looking for some general info on what would be considered a fair package. I'll be involved with all aspects of acquisitions and development including leading individual projects - I'd be roughly considered a development manager. I'm post MBA with experience in both development and investment sales. I was told I'll receive both base comp/bonus and a percentage of the promote on each deal I'm involved with.
I'm super excited about it and will be taking the job no matter what but I'd love some input around what to ask for. Thanks for the help!
what is the profile of their annual development pipeline (size/units/SF generally) and what market are you in? Very generally speaking without that info, I would say development manager market is around $135,000-150,000, 20% bonus, carry varies widely by shop, but perhaps 1-2% of promote cash flow.
Hmm my experience has been that if you're angling for a salary over $125,000 and a meaningful cash bonus, you shouldn't expect any carry. Small shops, even successful ones, need to run a tight ship. If they're hemorrhaging cash to pay salaries (which is fine), they're not also giving away all the future upside too. Especially since as they grow, they'll need that equity to attract expensive talent for positions like a CFO.
I've seen folks ask for like 80-100,000 and then a couple points on carry and that's that, and also seen people making $150k + 50K bonus and getting nothing on the back end. If the company is profitable and has a real pipeline than taking the carry and growing with the firm can be wildly profitable, much more so than asking for that carry later in the firm's life cycle when it's worth far more.
This seems to be my experience too through my job search adventures outside of a few elite firms that only hire top MBA business schools">M7 MBA's.
I'm in the middle of the interview process for development manager roles (in a higher-salary coastal market) and this seems a bit high to me. (Unless I'm misunderstanding- those numbers sound like total comp numbers with the bonus included).
I've gotten quite a few knowledgeable inputs on it and I'm seeing 110,000 to 125,000 base plus bonus, and no promote for the larger, brand name companies. That is initial salary- obviously it would be higher after a couple of years in the role.
There's going to be a lot more variability and less transparency at the smaller shops than the large ones, but my impression is that they generally pay less, not more.
thought i bumped this but maybe not. interested as well for any other insight.
I'm an acq dude but that just FEELS high. That being said, you're kicking off the negotiation so perhaps not a terrible anchor just to show'em you mean business.
Seems like most post MBA Associates (straight out of a T20 Program) are getting $120,000 base, 30-40% bonus, and MAYBE 1-2 bps carry. These are at big shops (Related, Hines, Greystar, CIM).
You can scale up because it sounds like you're ahead of that curve.
Are you hearing that first hand? Just curious because that feels high although I don't doubt it.
CIM is higher,
Know a guy that just got in at Hines ad an associate and is making $110,000 w/ 30% bonus.
Not to challenge you on this but it seems unlikely any of those shops are giving carry at Associate level. Did you hear first hand by chance?
Second hand. I have not received an offer for Development Associate for any of the roles, but know people who work for 3/4 firms I listed.
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