Compensation Consulting

At FPL, we work with public and private real estate companies on important compensation initiatives by providing comparative market data, addressing specific questions with specific answers, delivering thoughtful advice, and helping to finalize and implement updated/new compensation programs. For more than 25 years we have conducted compensation studies for public and private real estate companies across all sectors, business models/strategies, size categories, and ownership structures. Conducting over 200 compensation studies per year, we leverage an industry-leading, proprietary database which is enhanced by annual initiatives on behalf of several prominent associations (e.g., NAREIT, NAREIM, REALpac, ICSC, Preqin). Our industry experience and corresponding capabilities explains why hundreds of real estate companies view FPL as a trusted advisor and routinely turn to us for compensation information and guidance.

How We're Different

Compensation tends to be a sensitive and complicated subject. In order to effectively address compensation, a real estate company needs a consultant who can operate as a trusted partner and advisor. Further, the consultant must be able to provide relevant market data and advice across a wide range of compensation and real estate related topics. At FPL, we pride ourselves on consistently exhibiting these characteristics.

But in the end, it comes down this: real estate companies need real estate advisors. Our industry knowledge and experience is unrivaled and is the reason why hundreds of real estate companies routinely engage us to conduct customized compensation studies. Learn more about the FPL difference below.

Data

  • FPL’s proprietary database: over 500,000 data points spanning more than 600 positions and 2,000 companies worldwide
  • Reviewed, structured, and helped implement hundreds of compensation programs, which has created expansive dataset on structures, incentive plan designs, and terms/conditions

Experience

  • Worked with clients of all shapes-and-sizes and dealt with a variety of challenging situations
  • Familiarity with industry dynamics and terminology allows us to get up to speed quickly

Knowledge

  • Deep understanding of compensation structures, incentive plan designs, and key terms/conditions used by firms throughout the industry
  • Intimate knowledge of business models, ownership and organizational structures, and individual executives/employees allows us to accurately interpret market data and address client issues

Customized

  • We avoid off-the-shelf solutions by customizing our methodology, analyses, and guidance
  • Our style of benchmarking uses details to identify comparable companies and jobs, which leads to relevant market data (not a rough cut of compensation amounts)

Practical Advice

  • Customized approach leads to accurate results and thoughtful, reflective advice
  • Our guidance and solutions are rational and realistic, not merely mark-to-market suggestions

Interactive Process

  • Given that compensation is a “charged” topic at most firms, we use an interactive and collaborative process whereby all parties are involved and able to provide input
  • Detailed step-by-step process established upfront, with multiple checkpoints along the way

Work Product

  • Thorough analyses and accurate market data
  • High-quality presentations and reports summarizing results of study
  • Effective solutions to multi-faceted challenges

Client Service

  • Engaged and responsive
  • Flexible and able to accommodate varying client needs and preferences
  • Active listeners and clear communicators

Our Team

  • Trustworthy professionals with relevant background and experience
  • Demonstrated work ethic, robust analytical skills, and service-oriented mindset
  • Tenured leadership team with strong track record and reputation in the marketplace

Our Core Offerings

Our projects vary widely in terms of scope of work and objectives, often based upon the client’s specific situation and circumstances.  However, most of our compensation studies, involve a combination of the services outlined below:

  • Benchmark pay levels and opportunities for executives, employees, and/or Board members
  • Cover all relevant compensation components and metrics
  • Issue market data via summary statistics (25th, 50th, and 75th percentile) for each position/individual and compensation component
  • Review and opine on compensation program vis-à-vis market norms and best practices
  • Address all aspects of the program, including overall structure, philosophy, pay mix, incentive plans, and employment contracts
  • Assist with finalizing and implementing agreed upon modifications
  • Design new or enhanced annual and/or long-term incentive plans
  • Cover all structural elements and terms/conditions
  • Establish performance criteria: metrics, requirements, weightings, and timeframe
  • Assist with implementing plans by reviewing draft documentation, creating presentation materials for internal rollout, and fielding questions from client constituents
  • Establish and document compensation philosophy/strategy
  • Benchmark aggregate compensation metrics such as bonus pool funding, carried/promoted interest splits and allocations, co-investment ratios, and management’s equity interests
  • Employment agreements, severance, and change-in-control arrangements
  • Regulatory issues and compliance
  • Customized surveys and market assessments
  • Board compensation benchmarking and recommendations