CEO-to-employee pay ratios at most of the largest US equity real estate investment trusts by market capitalization declined in 2023.
Of the 20 largest US equity REITs by market capitalization, 11 reported a year-over-year decrease in their CEO-to-employee pay ratios for 2023, according to an S&P Global Market Intelligence analysis. Eight REITs recorded an increase, and one reported that its CEO-to-employee pay ratio was flat compared to the prior year.
At 13 of the 20 REITs, the median employee salary increased compared to 2022.
CEO pay ratios and median employee compensation are collected by Market Intelligence on an as-reported basis from the proxy document filed by each company for 2023.
Prologis logs highest CEO pay ratio
Industrial REIT Prologis Inc. reported the highest CEO-to-employee pay ratio among all equity REITs for 2023, at 400x, down from the 403x reported the year prior.
The REIT's median employee compensation as of year-end 2023 was $127,272, up 6.5% from the $119,453 reported for 2022. Prologis CEO Hamid Moghadam's total compensation for 2023 reached nearly $50.9 million, up from $48.2 million the year before, ranking him as the highest-paid equity REIT chief executive in 2023.
Information storage-focused Iron Mountain Inc. held the second-highest CEO-to-employee pay ratio for 2023, at 371x, followed by communications REIT American Tower Corp. at 329x.
Among the 20 largest equity REITs, casino REIT VICI Properties Inc. had the lowest CEO-to-employee pay ratio, at 30x, and the highest median employee salary at $376,391.
– Read the S&P Global Market Intelligence Executive Compensation Review for US REITs.
– Click here to set email alerts for future Data Dispatch articles.
When expanding the analysis to all US equity REITs, Franklin Street Properties Corp. reported the lowest CEO-to-employee pay ratio, at 1.3x, followed by hotel REIT Sotherly Hotels Inc. at 2.3x and Alexander's Inc. at 2.8x. The median CEO-to-employee pay ratio among all REITs was 57x for 2023.
Multifamily REIT BRT Apartments Corp. reported the highest median employee salary for 2023, at $466,816. Office REIT Equity Commonwealth ranked second, with a median employee salary of $401,565.
Four Corners Property Trust, which primarily owns restaurant and retail properties, reported the lowest median employee salary for 2023, at $17,391. According to the REIT's Schedule 14A filed in April, the median employee salary figure includes both full-time and part-time workers. As of year-end 2023, 92% of the REIT's employees work at one of its consolidated subsidiaries that operates seven LongHorn Steakhouse restaurants located in the San Antonio area.
