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Real Estate Compensation Consulting

A Partnership between RCLCO Management Consulting and CEL Compensation Advisors

In addition to our executive search and organizational strategy services, RCLCO offers compensation consulting, rounding out a full suite of strategic talent management advice.

In coming together with CEL Compensation Advisors and leveraging the comprehensive data in the Real Estate Compensation & Benefits Survey, we will help you create performance recognition and reward programs that align leaders and their teams, allowing for the successful attraction and retention of  best-in-class talent.

Services for Real Estate Companies

Align compensation with individual, team, and corporate performance with our market-driven analysis and customized plans:

Compensation Benchmarking and Plan Design

Compensation is an art as well as a science. Effective compensation decisions must manage within a framework of enterprise and/or interests. This framework guides the successful application of current market data, proven analytical tools, sound methodologies, and strategic context, enabling our clients to:

  • Align compensation and rewards with performance expectations and enterprise goals
  • Offer state-of-the-art performance based incentive programs
  • Facilitate the recruitment, retention, and recognition of outstanding talent
  • Provide benchmarks that influence performance behavior and results
  • Assure an optimal and cost-efficient operating platform
  • Integrate in-depth industry operating knowledge with annual and long-term compensation program design and implementation

Long-term Incentive Strategies

It can be challenging to design and implement effective plans which motivate and retain employees, set high achievement standards, provide appropriate market levels of financial opportunity, align with the goals of the company/shareholders, and allow for flexibility in a rapidly changing business environment. Come to us for creative and insightful process creation regarding the development and implementation of new incentive programs as we:

  • Integrate company compensation philosophy and strategy into plan design
  • Review and analyze current company incentive structure
  • Match company strategy and operations to appropriate incentive programs
  • Recommend incentive design, performance metrics and award criteria
  • Develop and review Plan documents
  • Create compensation communication plans and materials
  • Support the implementation of new incentive programs

Executive Compensation Review and Governance

Compensation governance, whether mandated by regulatory bodies or as directed by owners/shareholders, requires a disciplined approach to establish an appropriate peer group, define the proper compensation benchmark, and determine compensation awards. Our insightful and hands-on experience support Compensation Committees and Boards of Directors in assuring compliance and achieving consensus among leadership/owners. We will:

  • Integrate company compensation philosophy and strategy into plan design
  • Offer recommendations for incentive design, performance metrics, and award criteria
  • Provide language for Proxy statements and CD & A presentation
  • Respond to Shareholder concerns and Say-on-Pay responses
  • Provide an annual analysis and reporting for Executive Compensation Review
  • Offer counsel and recommendations to Compensation Committees and Boards on important and often complex compensation issues

Board of Director Compensation Program Design

It is essential to define appropriate compensation levels and incentive programs for members of a Board of Directors in public or private real estate organizations. These members have varying roles: in public companies, outside members dominate with significant roles in the monitoring and oversight of all aspects of the company as well as having roles on key Committees; in private companies, outside Board members often have a lesser role. Regardless of the situation, designing appropriate Board of Director compensation requires a full understanding of the dynamics of control and governance as well as the duties, responsibilities and risks associated with Board membership. Our work would entail the following:

  • Review and analyze current Board compensation, roles and responsibilities
  • Assess issues and dynamics of Board governance from interviews
  • Establish an appropriate peer group for Board compensation review
  • Set an appropriate benchmark as compared to market compensation
  • Provide recommendations for Board of Directors’ initial (at election) and annual compensation

Performance Metrics and Benchmarking

Designating the metrics used to define and benchmark performance are key to monitoring the correlation between performance outcome and incentive compensation. Performance metrics themselves need adaptability, adjusting to the issues, economic circumstances, and risks that impact markets and the company. These metrics must not only be fair, their measurement and corresponding potential compensation award should be agreed upon between the executive and Board of Directors/Owners in order for a program to be creditable. Absolute and relative performance (vs. a peer group) measurement is an ideal structure but usually can be established only with public companies.

  • Review and analyze current company incentive structure(s)
  • Build and define performance incentive plans
  • Define Target, Threshold and Outstanding levels of performance for executives and the company
  • Develop multi-year performance criteria and awards
  • Recommend incentive design, performance metrics and award criteria
  • Clarify performance measurement and evaluation criteria for positions, regions and departments
  • Align performance measures across levels of employee/responsibility
  • Create compensation communication plans and materials
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RCLCO Compensation Consulting

The RCLCO & CEL Real Estate Compensation & Benefits Survey

RCLCO Compensation Consulting Survey

The annual compensation survey that is the national standard for the real estate industry

Since 1989, the annual publication has provided accurate, timely, and confidential compensation information to thousands of users. No other survey is as comprehensive or offers equivalent validity based upon so many years of results.

The survey incorporates hundreds of positions and participant companies in the office, industrial, retail, residential, advisory and brokerage/services sectors, including public and private companies engaged in investment, management, development, construction, leasing and many other real estate functions.

Learn more about the survey & access the results