In a recent survey of corporate real estate executives at corporations globally, 81% reported that their base salary increased from 2015 to 2016 by an average of 4.6%. In addition, 75% projected further increases in 2017, according to a survey conducted by CoreNet Global and FPL Associates.
“Projected increases for 2017 are more conservative than we have seen in years past. This is consistent with what we are seeing across the real estate industry “ said Lindsay Pankratz, Survey Director at FPL Associates.
The average total annual cash compensation for a head of corporate real estate globally was $280,000 in 2016 compared to $265,684 in 2015, an increase of more than 5%. Since 2012, the average total annual compensation for head of corporate real estate has increased by more than 20%. In North America, the average total annual cash compensation was $292,000 in 2016, nearly 9% higher than a year earlier.
Overall, nearly half of participating companies reported an increase in annual cash bonuses; just 22% reported that annual cash bonuses had decreased.
“Corporate real estate is increasingly viewed as a key strategic resource that the corporation can leverage to achieve its business goals,” said Tim Venable, Senior Vice President at CoreNet Global. “Examples include higher levels of employee retention and attraction, a greater commitment to sustainability, lower energy costs, increased flexibility in uncertain times and reduced operational risk.”
In the third quarter of 2016, FPL worked with CoreNet Global to develop a questionnaire for the purpose of gathering compensation information relevant to internal CRE organization employees in the current market. The questionnaire included a number of questions that have become standard to the CoreNet Global Compensation Survey, to allow for comparisons to prior years’ studies and to identify trends.
For this year’s survey, 141 end user (occupier) members provided thorough responses, classifying them as participants. FPL gathered all of the responses, clarified additional information, as needed, from participants, and then analyzed the data to develop the summary report.
The companies represented a wide variety of industries, with most in the technology, financial services and insurance sectors. Others included energy, manufacturing, pharmaceuticals, business services, consumer products, and healthcare.
95% of participants’ internal CRE organizations currently have operations and/or staff located in the United States, 60% in Europe, and 52% in Asia.
CoreNet Global is the world’s leading professional association for corporate real estate (CRE) and workplace executives, service providers and economic developers. CoreNet Global’s 10,000 members, who include 70% of the top 100 U.S. companies and nearly half of the Global 2000, meet locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally.
FPL Associates, a member of the FPL Advisory Group family of companies, provides a range of specialized compensation and management consulting solutions to a select group of related industries. As part of its compensation services, FPL Associates assists clients in the assessment, design, and implementation of compensation programs for professionals and board members. The company specializes in crafting performance management and reward systems that align management interests with the achievement of strategic business objectives.
Pictured : Tim Venable, Senior Vice President at CoreNet Global
Source : CoreNet Global