REM report voted down

SCA Property, the real estate offshoot of Woolworths, which reported a maiden loss of $4.4 million due to costs associated with its float, has also received a first strike for its remuneration report.

SCA Property, the real estate offshoot of Woolworths, which reported a maiden loss of $4.4 million due to costs associated with its float, has also received a first strike for its remuneration report.

At its inaugural annual meeting, the real estate investment trust faced feisty investors who voted down the report, with 46 per cent against.

As part of the remuneration report was a proposed issue of "special one-off award of performance rights" for chief executive Anthony Mellowes and former chief financial officer Kerry Shambly.

If all vested the maximum they could receive would be $400,000 for Mr Mellowes and $55,000 for Ms Shambly, who left the group after eight months.

This raised the ire of corporate governance bodies such as ISS.

In the SCA annual report, it says these rights would be vested in two tranches.

But the report added: "In the event that unit holder approval is not granted [at the AGM] it is expected that the monetary equivalent will be paid."

The governance group said that effectively amounted to a choice between a cash and an equity incentive, rather than a decision on whether to approve an incentive offer.

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