Goodman Group executives hit pay-hit executives after second strike

“I understand that the primary concern expressed by the lead consultancy was largely based on their view that EPS [earnings per share] the obstacles are not demanding enough. We strongly disagree with that assessment,” Chairman Stephen Johns told shareholders at their annual meeting on Thursday.

Criticism of the incentive scheme arose because the board used an “economic value approach” to assess the earnings hurdle rather than “the face value approach more commonly used by the market”, it said. the meeting.

Mr Johns said the board subsequently accepted face value “as the primary determinant of quantum”. As a result, the incentives that will be granted in the 2023 financial year to Mr Goodman and the group’s key executives “have been significantly reduced”, he said.

Based on the face value of the maximum potential outcome, Mr. Goodman’s proposed incentive award for this year has been reduced by 46%, while five other senior executive incentive awards will be reduced by 33% .

The largest real estate player on the ASX, the $33 billion Goodman also took one of the biggest hits amid the sector’s broader correction. Its stock is down about 31% since the start of the year, while the sector has fallen 22.5%.

But Goodman is also the industry’s biggest earner, with operating profit of $1.5 billion in fiscal 2022, up 25%. More growth is ahead, with Goodman reporting an 11% increase in EPS this year.

“We understand that the market environment is more challenging going forward, so we continue to be cautious in our approach to risk management,” Mr. Goodman told investors Thursday.

“But we also understand that we are in a world where our customers are always striving to optimize the efficiency and productivity of their facilities.”

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