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Redfin execs tighten belt and give agents a boost

Brokerage had unscheduled meeting on financial impact of coronavirus

Redfin CEO Glenn Kelman (Credit: Redfin)
Redfin CEO Glenn Kelman (Credit: Redfin)

Agents at real estate brokerage Redfin are getting a reprieve and the CEO is forsaking compensation in light of the coronavirus pandemic.

Glenn Kelman, the CEO of Redfin, said he will give up pay for the remainder of the year, according to a report in Inman. Agents at his company will get an increase in their fixed pay to make up for the drop-off in transactions. The members of its board also agreed to forego cash payments for their services, and all employees at the company’s headquarters will give up cash bonuses for the rest of 2020.

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The compensation Redfin agents receive depends in large part on feedback from customers and deal closings. Unlike other brokerages, agents at Redfin are employees, not independent contractors.

“The compensation of our agents is heavily variable and driven by home sales,” Redfin Chairman Bob Mylod wrote in a letter to the Securities and Exchange Commission, the Inman report said. “However, with an expected material drop-off in transactions in the coming weeks and months, our agents’ wages are likely to be hurt disproportionately.”

The company has not yet ruled out furloughing agents and employees at its headquarters. [Inman] — Georgia Kromrei

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