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An SEC submitting confirmed the Compass CEO is letting go of $25 million in performance-based restricted inventory unit awards in alternate for one thing a bit extra tangible. His wage can be going as much as $900,000.
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Compass CEO Robert Reffkin is letting go of $25 million in performance-based restricted inventory unit awards in alternate for one thing a bit extra tangible — a $7 million money bonus, in keeping with an SEC submitting The Actual Deal reported on.
Robert Reffkin | Compass
The CEO’s base wage can be getting a lift, at the least from most up-to-date obtainable figures. In 2024, Reffkin’s wage will probably be $900,000, up from the $400,000 he earned in 2022. His 2023 wage shouldn’t be but public.
Reffkin may even obtain a performance-based bonus in 2024, and $2.25 million in restricted inventory items (RSUs), which is able to vest yearly over 4 years. In 2025, he’ll get a second RSU.
As a result of there are restrictions on when RSU shares could be offered, their future worth shouldn’t be but recognized.
Compass has struggled to make a revenue since its inception, and shares have misplaced 80 p.c of their worth for the reason that brokerage went public in 2021. Nevertheless, shares are additionally up 95 p.c 12 months over 12 months.
The corporate can be slated to pay $25,000 in authorized charges related to the modifications made to Reffkin’s compensation.
The changes have been made “with the target of offering market-based CEO compensation,” and after enlisting an unbiased compensation guide, SEC filings confirmed.
Ryan Schneider | Anyplace
Reffkin’s new compensation is certainly consistent with different main actual property CEOs, nonetheless, these corporations have a a lot better profitability monitor document.
Anyplace’s Ryan Schneider was given an $8 million fairness grant final 12 months, a $5 million money bonus, and earns a base wage of $1 million. The bonus, in keeping with SEC filings, was largely attributable to Anyplace’s settlement of the Sitzer | Burnett fee lawsuit, which resulted in bigger judgments towards different corporations that went to trial within the case.
Opendoor’s Carrie Wheeler earned a base wage of $750,000 final 12 months, in addition to a $250,000 goal bonus, a $250,000 efficiency bonus and $27 million in fairness. After some struggles earlier within the 12 months, Opendoor returned to profitability throughout the second quarter of 2023.
Carrie Wheeler | Opendoor
In 2021, Reffkin’s compensation was tied rather more carefully to the brokerage’s fairness, seemingly as a result of Compass went public that spring. Reffkin earned $89 million in fairness throughout 2021.
And regardless of having a much less tied-up wage and bonus on the horizon, Reffkin’s up to date compensation package deal shouldn’t be with out restriction — if he leaves Compass or is fired within the subsequent two years, he must repay the $7 million bonus, with $875,000 turning into non-refundable every quarter.
In 2021, Compass’ inventory debuted at $18 per share and hit a low in 2023 of $1.82 per share. As of Tuesday, shares have been at $3.54. In the meantime, Anyplace’s inventory was at $7.89 at market shut on Tuesday, and Opendoor’s was at $4.28.
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