US REIT CEO pay ratio fell slightly in 2024

The median CEO-to-employee pay ratio for US equity real estate investment trusts was 53x in 2024, compared with 55x for the same constituents the year prior, according to an S&P Global Market Intelligence analysis.

By comparison, the median employee compensation for the REIT sector grew 2.9% to $126,879 in 2024.

CEO pay ratios and median employee compensation were collected by S&P Market Intelligence on an as-reported basis from proxy documents filed by companies for 2024.

Simon Property records highest pay ratio for 2024

Regional mall REIT Simon Property Group Inc. reported the largest CEO-to-employee pay ratio among equity REITs for 2024, at 785x, more than double the 298x reported the year prior.

According to Simon Property's Schedule 14A, the total annual compensation for the company's median employee was $78,174, up 49.9% from $52,167 reported the year prior. CEO David Simon's compensation for 2024 nearly quadrupled year over year to $61.4 million from $15.6 million, ranking him as the second-highest-paid equity REIT CEO in 2024.

Data storage-oriented Iron Mountain Inc. ranked second, with a CEO-to-employee pay ratio of 495x for 2024, while office REIT SL Green Realty Corp. rounded out the top three with a reported CEO-to-employee pay ratio of 330x for 2024.

Conversely, office REIT Franklin Street Properties Corp. reported the smallest CEO-to-employee pay ratio, at 1.36x, followed by ground lease-oriented Safehold Inc. at 2x and hotel REIT Sotherly Hotels Inc. at 2.2x.

Multifamily REIT BRT Apartments Corp. reported the highest median employee salary for 2024, at $479,795. Casino REIT VICI Properties Inc. ranked second, with median employee compensation of $465,476.

Four Corners Property Trust, which primarily owns restaurant and retail properties, reported the lowest median employee salary for 2024, at $20,619, up 18.6% year over year. The median employee salary figure includes full-time and part-time workers, with 91% of Four Corners' employees working at one of its consolidated subsidiaries that operate seven LongHorn Steakhouse restaurants in the San Antonio area, according to the REIT's Schedule 14A.

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Looking at the 20 largest US equity REITs by market capitalization as of July 23, 11 reported a year-over-year increase in their CEO-to-employee pay ratios for 2024, while nine recorded a decline from the prior year.

Among the 20 largest US equity REITs, Essex Property Trust Inc. reported the second-highest year-over-year increase in its CEO-to-employee pay ratio, up 129.6%. Datacenter REIT Equinix Inc. also reported a more than 50% increase in its CEO-to-employee pay ratio for 2024.

Conversely, communications REIT American Tower Corp. reported a 52.3% decline in its CEO-to-employee pay ratio to 157x. Industrial REIT Prologis Inc. also reported a nearly 50% decline in its CEO-to-employee pay ratio to 201x.

At 12 of the 20 largest REITs by market capitalization, the median employee salary increased compared with 2023.