Technology-powered real estate brokerage Real introduced a new equity compensation plan for agents, effective immediately.
Real CEO Tamir Poleg says the equity plan aligns with his businesses’ vision of focusing on agents’ long-term commitment and success while allowing them to accumulate wealth and plan for retirement.
“Investors, staff and agents all contribute to the growth of Real, but only investors and staff have equity in the company. We didn’t think that was right,” said Poleg.
The plan grants agents options to purchase shares of company stock at a set exercise price for joining the firm and meeting quarterly vesting requirements. Agents will also receive stock option grants for every deal they close, and when they reach their annual sales cap. Top performing agents will receive further stock options, as will agents who refer other agents to the Real platform. Poleg says Real is looking into other actions that would earn stock option grants, such as mentoring agents or posting articles on Real’s website.
An equity dashboard is being integrated into Real’s app, allowing agents to sign option agreements electronically and view their equity stake in real time.
With independent contractors predicted to become the U.S. workforce majority within a decade, Poleg hopes Real’s program will serve as a model for how to foster engagement and collaboration between real estate brokerages and their workforces.
“I feel most agents are viewed by brokerages as a commodity that is replaceable,” Poleg said. “By treating our agents as partners, we provide them with a sense of ownership and reward them for their hard work.”
Poleg hopes agents will own 15 to 20 percent of Real within a few years.
“It would mean that the company is growing and as the company grows there will be even more opportunities for stock options for our agents,” Poleg said.
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