In a recent survey of corporate real estate executives at large corporations globally, 83% reported that their base salary increased from 2014 to 2015, and 80% projected further increases in 2016, according to a survey conducted by CoreNet Global and FPL Associates.
The average total annual cash compensation for a head of corporate real estate globally was $265,684 (€235,431) in 2015 compared to $231,197 (€204,789) in 2014, an increase of nearly 15%.
Regionally, of the participants that work in North America, 84% saw an increase in base salary from 2014 to 2015 and 82% expect an increase in base salary from 2015-2016. Of the participants that work in Asia, 71% saw an increase in base salary from 2014 to 2015 and 71% expect an increase in base salary from 2015-2016. Of the participants that work in Europe, 90% saw an increase in base salary from 2014 to 2015 and 90% expect an increase in base salary from 2015-2016.
“The continually rising salaries in corporate real estate are driven by a recognition of the profession as key to overall corporate performance,” said Angela Cain, CEO of CoreNet Global. “As corporate real estate evolves, more people are seeing it as the well-defined profession that it is, as well as a financially rewarding career option.”
In the survey, which ranks numerous positions in addition to head of corporate real estate, 48% of the respondents received an increase in annual incentives/bonuses in 2014 compared to 2013, and 41% projected an increase for 2015 compared to 2014. The projected average increase in annual incentives for 2015 is 12%.
Long-term incentive compensation also increased for many of the respondents. 41% reported increases in long term incentives in 2014 compared to 2013, and 26% projected an increase in 2015 from 2014.
Participants reported receiving an assortment of ‘perks.’ On average, participants received the most amount of money for automobile allowances and tuition reimbursement.
Survey Methodology
In Q3 2015, 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, 172 end user members provided thorough responses, classifying them as participants. FPL gathered all of the responses, clarified additional information, as needed, from participants, and then analysed the data to develop this summary report. The largest categories represented were technology and financial services.
Nearly all of the participants had operations in the U.S., 59% had operations in Europe, 55% had operations in Asia, and 42% had operations in Canada.
