SCA report voted down
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.
Frequently Asked Questions about this Article…
SCA Property is a real estate investment trust that is an offshoot of Woolworths. It focuses on managing and investing in retail properties.
SCA Property is a real estate investment trust that is an offshoot of Woolworths. It focuses on managing and investing in retail properties.
SCA Property reported a maiden loss of $4.4 million due to costs associated with its float, which is a common occurrence for companies in their initial stages of public trading.
SCA Property reported a maiden loss of $4.4 million due to costs associated with its float, which is the process of becoming a publicly traded company.
At SCA Property's inaugural annual meeting, investors voted down the remuneration report, with 46% voting against it, resulting in a first strike for the company.
At SCA Property's inaugural annual meeting, 46% of investors voted against the remuneration report, resulting in a first strike for the company.
The controversy stemmed from a proposed 'special one-off award of performance rights' for the chief executive and former chief financial officer, which raised concerns among corporate governance bodies.
The remuneration report included a proposed issue of 'special one-off award of performance rights' for the chief executive and former chief financial officer, which raised concerns among corporate governance bodies.
If all performance rights vested, the chief executive, Anthony Mellowes, could receive up to $400,000, while the former chief financial officer, Kerry Shambly, could receive up to $55,000.
If all performance rights vested, the chief executive, Anthony Mellowes, could receive up to $400,000, and the former chief financial officer, Kerry Shambly, could receive up to $55,000.
Corporate governance bodies, such as ISS, expressed disapproval, as they believed the report effectively offered a choice between a cash and an equity incentive, rather than a straightforward decision on the incentive offer.
Corporate governance bodies, such as ISS, expressed disapproval of the remuneration report, particularly the proposed performance rights for executives.
If unit holder approval is not granted at the AGM, the SCA annual report indicates that the monetary equivalent of the performance rights is expected to be paid.
If unit holder approval is not granted at the AGM, the monetary equivalent of the performance rights is expected to be paid to the executives.
A 'first strike' occurs when a significant portion of shareholders vote against a company's remuneration report. It serves as a warning and can lead to further consequences if a second strike occurs in subsequent years.
The governance group stated that the remuneration report effectively offered a choice between a cash and an equity incentive, rather than a decision on whether to approve an incentive offer.
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