CHICAGO-Last year was a banner year for public commercial real estate executives. According to new research by locally based FPL Advisory Group, compensation for performance in 2012 increased by 7%, the highest it has been since the firm began studying compensation levels.

But in an exclusive interview with GlobeSt.com, senior managing director Jeremy Banoff says the major hikes might be coming to an end. “REITs have consistently outperformed the markets over multiple timeframes so earnings have been relatively high,” he notes. “That said, we're likely to see a plateau for 2013.” But don't fear for executive welfare. Banoff reiterates that current compensation, “equals the highest levels observed across the industry since the study's inception.” That means 11 years.

Then there's Dodd-Frank. Banoff explains that the so-called Say-on-Pay provision--that allows shareholders to vote on the executive compensation program at public companies—is having its effect. “Five REITs have failed Say-on-Pay,” he says, based on votes taken at recent 2013 annual meetings. “That equals the total number of REITs that failed in both 2011 and 2012 combined.

Those five REITs are part of a group of 27 public companies that failed. That's a really large percentage,” says Banoff. “In light of this,” he continues, “while REITs are generally well-aligned with performance, you'll see some radical responses to structuring compensation, particularly in these instances. That, rather than the broader economy, will likely have a larger impact in terms of 2013 compensation levels.” He adds that while the shareholder votes are non-binding, most companies do take the vote to heart and change their compensation program.

A final reason why compensation might lie flat this year is simple accounting. “More than half--60%--of companies now measure performance not just on a single-year basis but also on a multi-year basis. I expect we'll continue to see this increase.”

But again, no one is turning their pockets inside out. As indicated, the compensation levels flatten at record times. Here is a round-up of FPL's other findings:

• Last year marked the fourth consecutive year of positive total shareholder return performance among REITs and a record level of capital raising;

• Nearly 20 CEOs received salary hikes of at least $100,000 between 2011 and 2012. That compares with only 10 who hit that mark going into 2013. What's more, 35 didn't receive any increase at all.

• “Similarly, executives received a 12% uptick in the value of long-term equity incentive awards granted,” the report states. “Although this is an increase off the highest LTI compensation to date, the year-over-year percentage change is the lowest observed since the downturn.”

• While 2012'a 7% jump brought compensation to new, historic levels, it actually was the smallest increase in recent years, with the prior three years posting double-digit gains. • Last year also saw companies continuing to “remove gross-up provisions, implement share ownership guidelines, adopt clawback and ant-hedging policies as well as adopt more transparent annual or multi-year performance based programs,” the report says. Much of this comes from legislative pressures, such as Dodd-Frank.

““Statistically speaking, REIT pay is well aligned with performance, which bodes well,” reflect Banoff. “However, underlying concerns exist in light of the relatively high Say-on-Pay results.”