Lean times may be over for some corporate executives. Nearly two-thirds (64%) of the participants in a global survey of senior level corporate real estate and workplace executives reported that they received an increase in their base salary last year, according to CoreNet Global, a corporate real estate association which administered the survey along with FPL Associates.
In addition, 74% of the respondents indicated that they expect to receive an increase in their company’s 2010/2011 annual fiscal period.
“Clearly this is a positive sign and consistent with broader real estate professionals industry wide,” said Jeremy Banoff, senior managing director at FPL Associates.
“However it is important to note that such increases are taking place on relatively reduced levels from the prior year, and as such, compensation has not yet been fully restored to the pre global financial crisis levels,” said Banoff.
“The compensation growth is an indicator that corporate real estate is valued within organizations and that overall a positive economic trend is upon us,” said Michael Anderson, senior research associate for CoreNet Global. “Real estate and workplace management is directly tied into overall corporate strategy, as it is a center of efficiency and savings. Therefore, corporate real estate managers are seen appropriately by senior level management as integral to the companies’ overall financial performance.”
The survey was conducted in late 2010 among 275 companies that lease or own corporate real estate. In the report, CoreNet Global charts base salary and bonuses or incentive based compensation for 19 key positions in corporate real estate.
The average base salary for a head of corporate real estate is approximately $175,000 $175,000 and the average total annual compensation for that position is just shy of $220,000, according to the report.
When calculating annual incentives, the research revealed that 48% of those surveyed felt that the company’s performance was the largest determinant of award rather than an individual performance.