Position & Peer Group Compensation Benchmarking
Experience reinforces the fact that compensation is an art as well as a science. Effective compensation decisions must create the performance recognition and reward programs that:
ne of the essential services provided to the real estate industry by CEL is the tracking and review of market compensation information for senior executives and other key company management and operating positions on behalf of owners, investors, Boards of Directors, Compensation Committees, CEOs and Senior Management. Regardless of the company type or its ownership structure, an independent market review of senior executive compensation is an essential element in public and private management responsibilities and governance. CEL has performed many such reviews for: annual public company Compensation Committee needs; periodic private company management reviews; and special circumstances related to strategic transition, client/investor requests/reviews, leadership change, retention concerns or other operating circumstances.
For senior executives, mid-level management and other operating (and property level) positions, the annual CEL National Real Estate Compensation & Benefits Survey and the depth of other CEL proprietary compensation databases and knowledge provides clients with industry leading compensation resources for evaluating positions deep into a real estate organization. CEL is always “on top” of industry data and trends, and can apply them to the unique needs of individual companies. Our databases of compensation information, industry knowledge based on consistent client interaction, as well as relationships with hundreds of real estate industry companies provide us with an unmatched capacity to define an appropriate peer group and provide timely market profiles to support award decisions and compensation planning.
Corporate operating issues and changes generate needs:
- Compensation policy and practice review.
- Recruitment and retention of key executives and management leaders.
- Periodic competitive market compensation information needs.
- Company and/or industry compensation issues or trends.
- Improved alignment of compensation and corporate strategy.
- Improved linkage between performance and compensation.
- Investor and market perceptions of executive compensation.
CEL offers independent advice, fulfilled by:
- Validation of market levels for base salary and incentive compensation awards.
- Benchmarks for annual and long-term incentive compensation levels.
- Identification of appropriate benchmarks for company and position within an appropriate peer group.
- Perspectives on industry compensation practices and trends.
- Comparative analysis of current compensation mix and structure.
- Independent review and recommendations for compensation levels and components.
CEL adds value from insight and experience for decisions:
- Cash and LTIP compensation recommendations.
- Annual Compensation Committee review of CEO and NEO compensation.
- Compensation planning and aligning compensation with corporate strategy.
- Existing compensation plan review and recommendations.
- Specific recommendations for changes to current compensation (cash and LTIP).
- Special compensation issue analysis.
- Design/evaluation of annual and long-term incentive structures.