Pay packages for employees at private equity real estate firms are beginning to increase again with the worst of the economic downturn behind us.
According to a joint study by industry specialist recruitment consultancy Sousou Partners and PERE magazine – revealed in this month’s issue – staff at firms in North America, Europe and Asia, were better remunerated last year than in 2008.
In the first study of its kind, PERE provides a detailed chart on compensation levels for a range of employees including analysts, associates, vice presidents, directors and managing directors in each region. Our data shows the median, average and ranges of compensation over the last three years, both base pay and bonuses (not carried interest), for each level of seniority.
In Europe for example, a director with 11 to 14 years’ experience in the industry, took home an average total compensation package (incuding base pay and bonus) of £420,000 ($649,000; €513,000) in 2009. This is a marked increase on the £333,000 a director took home in 2008, yet still behind the £441,000 average earned in 2007.
Meanwhile, the equivalent director in North America took home an average total compensation of $539,000 last year. This was off the $614,000 average earned in 2007, but again it marked an increase on the $517,000 average earned in 2008.
In Asia, directors earned an average total of $406,500 last year, up from the $374,000 in 2008, but significantly down from the $476,500 earned in 2007.
Ghada Sousou, managing partner at real estate and infrastructure-focused Sousou Partners, says that in general compensation levels today have adjusted to more rational levels after the “mad” months of 2007 prior to the advent of the credit crunch.
She adds: “Looking back, people were over-hired, overpaid and over-promoted.”
Click here for the full PERE magazine story and chart (PERE magazine subscribers only).