Property giant Westfield Group's executive pay policy has been sharply criticised by two major proxy firms, despite both firms having backed Westfield's remuneration report ahead of its annual general meeting in April, according to The Australian Financial Review.
CGI Glass Lewis and its international peer ISS both called on Westfield investors to back the company's remuneration report last month, but have since questioned the $18 million combined pay package for Westfield's chief executives Steven Lowy and Power Lowy.
“We question the need for the entity to allocate such significant pay towards the chief executive role,” CGI argued in a report, according to the AFR.
“At a minimum, we expect an entity to provide a thorough and convincing explanation for such high remuneration, which this entity has failed to do.”
The proxy firm acknowledged that Westfield's executives have had their pay frozen for four of the past five years, but argued there is too “great a focus on short-term performance” within Westfield's incentive packages.
During the past year, Westfield has reformed its remuneration methods, distributing short-term bonuses in shares and deferring payouts.