Based on the 2008 proxy filings of the 100 largest publicly traded real estate companies as measured by equity market capitalization, the advisory group's annual study was the first of its kind in the industry and is now in its seventh year.

"It was surprising to see how much companies really did change their viewpoints on what people are planning on doing with compensation," Jeremy Banoff, managing director of FPL Associates, tells GlobeSt.com. "Though there were a number of instances of salary increases and even a few cases of decreases, the overwhelming majority of salaries remained flat. We see companies are understanding that there is a need for responsible actions, particularly in today's environment, when it comes to compensation decisions."

Additionally, the study showed cash bonuses had a double-digit drop in response to economic challenges, down nearly 16% from 2007 levels. Of total remuneration decreases, Banoff says the CEO took the biggest hit out of the top four positions analyzed, down about 24%. Banoff says the changes reflect fiscal responsibility within the real estate world, which bodes well for the industry moving forward. "The good news about what we've observed is that there really is a correlation to a certain degree on how performance is impacted compensation," he says.

Banoff says the low visibility in the sector will have a dramatic effect on compensation trends in the coming months and year. "It's going to depend on how the rest of the year shakes out and it's too early to tell what's going to happen toward the end of the year," he says. "When you talk to a CEO and ask them how confident they are in hitting targeted FFO goals, there's so much uncertainty as to what's going to happen given the volatile nature of the market."