Real estate company executives' compensation declines; the era of high returns is a thing of the past

With the real estate industry entering a period of deep adjustment, the era of top executives at property developers—once having shone brightly with exorbitant pay—is accelerating toward its end.

Recently, listed real estate developers have released their 2025 annual reports in a concentrated batch. Data from multiple property developers that have already disclosed executive compensation shows that pay that once ran to tens of millions of yuan a year has nearly disappeared, while developers that can consistently pay million-level salaries have become rare.

The reconstruction of this compensation system is not only a direct reflection of a decline in performance, but also a profound footnote to the real estate industry’s shift—from large-scale expansion to stringent risk control.

In this regard, an industry insider says that this compensation downturn, in essence, is a reshaping of the industry’s value system. In the past, compensation was anchored to scale indicators such as sales revenue and growth rates, encouraging aggressive expansion; now, the core of performance assessment has shifted to risk indicators such as cash-flow safety, debt resolution, and delivery assurance. The end of an era of high salaries with low accountability means that the value of professional managers is no longer reflected in scaling and sprinting, but in risk resistance and steady, prudent operations.

From the “ten-million-yuan club” to “annual pay has fallen to ordinary workplace levels,” the cliff-like drop in property developers’ executive compensation is an inevitable result of industry clearing. When the windfall from high growth fades away and debt risks are cleared, the compensation system returns to rationality. This not only protects shareholders’ interests, but also drives the industry to abandon extensive, rough-cut expansion and shift toward high-quality development.

For practitioners, the era of high returns has become a thing of the past. A new track characterized by low growth, strong constraints, and a long cycle has already begun. Starting with compensation restructuring, the real estate industry is moving toward a future that is more stable and more sustainable.

(Editor-in-charge: Zhang Xiaobo ）

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