BusinessLive reports that with the maturation of the listed South African property sector that began with just a few companies in the early 2000s, remuneration structures are now being challenged.
Last week, Arrowhead Properties and Dipula Income Fund held annual general meetings where their remuneration policies faced criticism. At Arrowhead’s meeting on Tuesday, as many as 22.51% of shareholders voted against the real estate investment trust’s (REIT’s) remuneration policy, while 5.4% abstained. There was concern that long-term share incentive schemes were not subject to performance conditions. On Thursday, a majority of shareholders at Dipula’s meeting voted against the company’s remuneration policy. Some 44.96% were in favour, but 55.04% were against the policy and 0.66% abstained. Dipula’s board of directors said on Friday it had "commenced engagement with shareholders and various stakeholders to deliberate and resolve all matters relating to the company’s remuneration policy". Bridge Fund Managers’ Ian Anderson said he expected the remuneration structures of many South African REITS to be scrutinised in 2018.
- Read this report by Alistair Anderson in full at BusinessLive
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