EY's 2024 Real Estate Industry Salary Research Reveals New Trends in Talent Strategy. The research focuses on long-term incentives and successor training mechanisms, and identifies three core trends:
1、 The incentive mechanism shows obvious stratification
In the composition of executive compensation, the proportion of long-term incentives has significantly increased, forming a "golden handcuffs" effect. Data shows that 79% of institutions implement short-term incentive plans, of which 97% adopt an annual redemption mechanism. The decision-making level has the highest incentive coverage rate (86% -87%), highlighting the value binding to strategic makers.
Equity incentives have become the core of executive income, with 82% of companies using tools such as stock options. 64% of institutions adopt a dual assessment mechanism of "time+performance" and generally set a 3-4 year exercise cycle. It is worth noting that CEOs in the Midwest earn an annual salary of $900000, which is 4.4% higher than those in the South and Northeast regions.
2、 ESG indicators penetrate the compensation system
17% of institutions have incorporated ESG indicators into their bonus system, reflecting the trend of responsible investment in the industry. The welfare system presents diversified characteristics: 53% of enterprises have added health management projects, and 21% of institutions have established systematic talent training mechanisms. The median annual salary of CFOs in listed companies is $510000, which is 14.6% higher than the industry average, highlighting the scarcity of capital operation talents.
3、 There is a gap
Although 59% of companies have established succession mechanisms, only 11% have the ability to respond to sudden leadership changes. The compensation structure of the board of directors shows that the median annual salary of the chairman is $150000, which is 1.88 times that of ordinary directors. The proportion of equity in the director's compensation structure reaches 60%, forming a deep interest binding.
The talent retention strategy presents three major characteristics:
1. Salary benchmarking has become the norm, with 76% of companies establishing a market benchmark system
2. The executive compensation is in line with the market, and the annual salary of real estate CEOs is $889000, which is on par with the industry average
3. The rise of new professional committees in the board of directors and the incorporation of corporate social responsibility into the governance structure
Research has exposed key management weaknesses:
Lack of transparency in succession plans, with 95% of companies choosing limited disclosure
Imbalanced investment in talent cultivation, with only 21% of institutions setting up special development budgets
• Weak ability to respond to sudden leadership gaps
Currently, real estate companies are building a three in one talent strategy of "compensation incentive succession". Through differentiated incentive design, ESG value bundling, and team building, top institutions gradually form a talent moat. With changes in the regulatory environment, institutions that deeply align their compensation systems with strategic goals will become more competitive in the market. According to the series of measures and solutions mentioned above, the possibility of talent retention is greatly increased, thereby ensuring the healthy development of the industry.
