LONDON (Reuters) - Rising property vacancies, a lack of debt refinancing, and increased stakeholder scrutiny will pressure real estate firms to reform the way they reward senior executives, a report said on Monday.
A steep property market downturn, along with property stocks' underperformance against the broader share index, means inflationary salary increases and pay freezes are likely to become more prevalent, PricewaterhouseCoopers (PwC) said.
"Given the current state of the UK property market, increases in any element of fixed reward, such as salary, benefits or pensions, will be hugely unpopular with most stakeholders," Marcus Peaker, PwC's reward partner said.
"While the real estate sector outperformed the FTSE All-Share at its peak, it has since fallen sharply below the index," he said.
The median annual salary for a real estate chief executive is 405,000 pounds, while a finance director earns 300,000 pounds, PwC data showed.
This is close to the FTSE All Share median salaries of 411,000 pounds for CEOs and 275,000 pounds for financial directors, the accounting firm said.
(Reporting by Daryl Loo; Editing by Andrew Macdonald)
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