Wondering whether your remuneration is in line with your peers? Or maybe if a move might make sense given the earnings available in other regions?
To aid your contemplation on this hugely important aspect of employment, sister title Private Equity Real Estate and global executive search advisory firm Ferguson Partners have teamed up to publish comprehensive pay scales across the seniority spectrum and across private real estate’s three major markets: the US, Europe and Asia-Pacific.
Though best paid of the three, US executives in the sector have been more comfortable with relatively lower base pay and higher variable pay than their European and Asian counterparts. Asia’s executives are also better paid than those in Europe when it comes to base and bonuses. But, unlike their European counterparts, they hardly register for promote payments until they reach considerable seniority.
These differences stood out against a backdrop of flat pay inflation, according to Serena Althaus, senior managing director at Ferguson Partners, who blamed insufficient numbers of market entrants since the crisis.
“It is the market disrupters that typically drive wage inflation,” Althaus said. “If a new platform comes in, say from another asset class, and starts pinching from existing platforms, that leads to them rehiring, which leads to price increases. Because we haven’t seen many new entrants, we haven’t seen much in the way of disrupting forces.”
The report also revealed that investment professionals commonly earn greater bonuses than their asset management counterparts, typically a multiple of their base pay versus a fraction of it. While she has seen instances of 300 percent bonuses, Althaus said: “For most private equity roles, it’s somewhere between 50 and 150 percent. Asset management roles are typically circa 15 percent discounted in terms of base salary and bonuses range from 30 to 70 percent.”