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| Executive Compensation in EREITs: EREIT
Size is But One Determinant Author: William G. Hardin, III Start Page: 401 Abstract: Prior research of
senior executive compensation in real estate investment trusts (REITs) has found REIT size
as the sole statistically significant determinant of compensation. This research finds
that size is only one of several determinants of equity REITs (EREIT) senior executive
compensation. In addition to size as measured by EREIT market value, the designation of
the EREIT as a retail EREIT, the percentage of stock owned by the senior executive, the
dollar amount of dividends paid to the senior executive and the number of years since an
EREIT’s initial public offering were found to be significant factors impacting senior
executive compensation. The results also contrast with the general executive compensation
literature that shows proxies for size as the primary determinants of executive
compensation. This research indicates the need for industry specific compensation models
to account for variation in executive compensation. |
