Impact of COVID-19 on REIT Compensation Debrief: An Unprecedented Year for Modifications to Annual Incentive Plans But Limited Changes to Long-Term Incentives
The past year has been unprecedented in many ways, including the economic impact of the COVID-19 pandemic on the REIT industry. Throughout 2020, companies regularly reviewed compensation to monitor the pandemic’s impact on existing pay programs and to assess what, if anything, should be done to maintain alignment of executive pay and investor interests while continuing to motivate performance during these challenging times.
Ferguson Partners Consulting L.P. has analyzed executive compensation data from the 2021 proxy statements of 140 self-managed equity REITs to understand the compensation actions taken during the 2020 performance year. While approximately 15% of equity REITs reduced salaries during 2020, the majority of companies modiﬁed incentive compensation components.
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