The changing faces of the property industry

Citation

(2001), "The changing faces of the property industry", Facilities, Vol. 19 No. 13/14. https://doi.org/10.1108/f.2001.06919mab.001

The changing faces of the property industry

The changing faces of the property industryKeywords: Property industry, Company diectors, Employee turnover

Of the 4,347 UK directors of companies in the property industry, 17 per cent changed jobs last year. How do all of these different personalities affect the individual companies they are working for and shape the industry as a whole?

A new study analysing almost 2,000 companies and their directors in the property industry aims to reveal these personalities giving a unique insight into the characters running today's companies.

Mr Average

The study found that the average director in the property industry is 52 years old and has been in the job for over six years. The average salary is £66,000 per annum. Looking beyond these averages a fascinating picture was revealed.

Old hats

The study revealed that despite this 17 per cent yearly turnover of directors almost 44 per cent or 1,918 directors have held their position for more than ten years. Of UK directors in the property industry 1,529 (or 35 per cent) are now over 60 years old. Over the next three to five years, as these bastions of the industry reach retirement age, there could be a profound effect on the companies they formerly controlled.

Marathon runners

If the industry is a victim of an ageing set of leaders there was no evidence that their company's performance was flagging. Of the 895 companies where these over 60 year olds work, almost 20 per cent are running successful companies. This compares favourably to the industry average of only 18 per cent.

Acquisition possibilities

What are the chances of a company selling up because the directors are getting long in the tooth? It is certainly a scenario that predators look for when scanning for prospects. Named in this study are 174 companies where every board member is over the age of 55.

For the head-hunter

Whilst there can be no one reason why a company achieves high sales growth, named in the analysis are 485 directors that since their appointment have been able to increase sales year on year. For 56 directors, this is the third year their company's sales have increased.

Recently appointed

A total of 23 per cent of all companies in the UK property industry have appointed directors within the last 24 months, representing almost 743 appointments. Almost 29 per cent of these recently appointed directors have been recruited to 337 companies that are facing some sort of financial difficulties. For 52 of these companies it represents a whole new board. These changes should be regarded as a new competitor and represent a fresh face for a company.

Young guns

As to the succession policies of companies in the property industry, 286 directors are under the age of 35 with 15 per cent of these working at successful companies. Of these "young guns", 131 have been appointed in the last 24 months. Are these entrants likely to form a successful future for the companies they are responsible for? Only time will tell.

In summary

The analysis aims to show that it is not the companies that perform well but arguably, it is the directors that carry the most control over company performance. The individual performance of every one of the UK Top 2,000 companies in the industry is revealed in this latest publication as well as the contrasting profiles of the 4,347 UK directors in the property industry.

For details of the analysis and to see if your own company is reviewed call Plimsoll Publishing on +44 (0) 1642 257800.