Private Company Expertise

FPL advises numerous privately-owned real estate companies and our work spans all business models within the private sector.  Over the past several years, we have spent a majority of our time on compensation projects for real estate fund managers (investment management and private equity firms), developers, operating companies, and family-owned businesses.  These companies regularly engage us to provide all of the aforementioned service offerings. These projects frequently cover multiple topics, including:

  • Base salary
  • Annual bonus
  • Total cash compensation (base salary and annual bonus)
  • Long-term incentive (across all forms/vehicles)
  • Total remuneration (total cash compensation and long-term incentive)
  • Types of performance used by organization level (seniority) and department (functional area)
  • Specific performance metrics, requirements, and weightings
  • Aggregate (companywide) bonus pools, including percentage of pre-bonus profits
  • Year-end incentive pools and allocation/calculation mechanics (capturing all types of awards)
  • Overall structure and plan designs
  • Performance criteria, timing, and award calculation
  • Deferral mechanism and time frame
  • Terms/conditions (e.g., vesting and payout)
  • Splits: house vs. management, founders vs. others, partners vs. non-partners
  • Individual allocations: market data for points and dollars-at-work (customized to fund size)
  • Key design elements: eligibility, allocation timing, use of reserve, vesting schedule, termination treatment
  • Use of requirements vs. opportunities
  • Amount of co-investment (relationship to carried/promoted interest, relationship to ownership, based on level, or discretionary)
  • Financing assistance, including company-sponsored loans
  • Use of equity purchases vs. grants
  • Different forms of equity (A vs. B vs. C units)
  • Industry prevalence and trends
  • Key structural elements and terms/conditions
  • Impact on other forms of compensation
FPL Compensation Consulting - Overview (Private Companies)
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FPL Compensation Consulting - Additional Engagement Detail (Private Companies)
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