Key Highlights
- According to the RealDeal, Compass temporarily cutting salaries for next 3 months
- Compass reduced administrative staff hours to 10 hours/week instead of salary cuts
- This residential brokerage still actively recruiting agents
Last month, Compass, the SoftBank-backed residential brokerage, laid off 15% of its staff, approximately 375 people. This month, Compass is temporarily reducing salaries (impacting 3 months’ worth of pay) by 10% – 50% based on amount of that salary.
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Here’s is what Compass’ tiered reduced salary levels look like:
- 10% cuts for those making under $75,000
- 20% cuts for those making $75,000 – $150,000
- 30% cuts for those making $150,000 or more
- Some executives to see cuts of 50%
- CEO Robert Reffkin not taking salary for remainder of year
Compass documents indicate that employees will get their lost wages in the form of restricted stock on August 1, according to the RealDeal. A statement from the brokerage’s internal document indicated, “We are unfortunately taking steps to preserve as many jobs as possible during this unprecedented economic downturn. We thought we’d be working from home for weeks, with agents unable to and sell home for weeks, and now it looks like a matter of months.”
Other brokerages are in this same pandemic-economy defensive boat. In early April, the Corcoran Group, Douglas Elliman, Brown Harris Steven, Halstead, Redfin, Opendoon and Realogy have made similar hard choices by laying off, furloughing and/or cutting salaries. EXp Realty has cut 15% of its staff without touching and while recruiting additional agents.
Compass is not touching its product and engineering team of some 500 people as “…all of us came to Compass to build the tech platform for real estate.”
Compass continues to heavily recruit agents during this COVIC-19 pandemic. The company has hired 62 agents in the New York region, 43 agents in Short Hills, NJ and 27 agents in Long Island. All these new hires were on-boarded virtually plus Compass added a new suite of virtual tools for their agents’ use during this challenging time.
Thanks to The RealDeal and InmanNews’ Patrick Kearns.
