Study: REIT Executive Pay Soaring

Total pay for chief executive and chief financial officers at real estate investment trusts is rising at twice the rate of the total pay for CEOs and CFOs in general industry, according to a joint study by Steven Hall & Partners and Equinox Partners.The study found that median total remuneration of CEOs in 117 public REITs rose 24% in 2005, compared with 10% among CEOs at Fortune 1000 companies. For CFOs, total pay rose 32% at the REITs and only 9.7% in general industry, the study says. The median total pay for CEOs amounted to approximately $1.92 million, of which $912,500 was in cash, including $495,000 in salaries, the companies reported. "These increases are on top of double-digit increases in the prior year, reflecting the combination of a bull REIT market with intense competition among public and private companies for seasoned executives," said Anthony LoPinto, CEO of Equinox, an executive search firm. "The dramatic rise in CFO compensation also reflects the severe shortage of financial professionals equipped to effectively manage in today's public reporting environment." The companies can be found online at http://www.shallpartners.com and http://www.equinoxsearch.com.