Westfield Group chairman and Australia’s second-richest person Frank Lowy has defended his right to receive directors’ fees.
Mr Lowy also hit back at criticism the shopping centre operator’s top executives – including sons and co-chief executives Steven and Peter Lowy – were paid too much.
At Westfield’s annual general meeting in Sydney on Wednesday, the billionaire defended the $750,000 he collected in 2012 as chairman of the property giant.
While shareholders expressed support from Westfield’s remuneration report, which passed with 97.73 per cent approval, 9.13 per cent of votes cast were against Mr Lowy’s re-election as chairman.
In the lead-up to the meeting, several proxy advisory groups and the Australian Shareholders’ Association spoke against Westfield’s policy on executive pay.
The combined salary of co-chief executives Steven Lowy and Peter Lowy was more than $18 million in 2012 – Steven Lowy’s total remuneration was $9.41 million, while Peter Lowy received $8.91 million.
Frank Lowy told shareholders that suggestions he, along with sons Steven and Peter, were excessively paid and should work without remuneration or accept a significant reduction were nothing new.
He said the suggestions ignored the value generated for shareholders in the past 20 years as Westfield become a global leader in the property industry.
“Issues of personal wealth, whether it is derived from Westfield or any other source, should not be and are not relevant to the remuneration committee or the board in determining the level of remuneration paid for any executive,” Mr Lowy said.
“The only relevant considerations are your role in the company and how well you are performing.”
The Australian Shareholders’ Association representative at the meeting Allan Goldin noted that Westfield’s top five executives were paid a total of $35 million in 2012, compared with about $25 million at the Commonwealth Bank and $32 million at BHP-Billiton.
The Westfield chairman said he had a “right to be paid” like any other director.
“Others may choose to waive their right to remuneration based on their own circumstances,” Mr Lowy said.
“As a matter of principle I do not.
“I rarely speak for Peter and Steven, but on this occasion I can assure you that this is the only basis on which we are prepared to continue to provide our services to the group.”
Mr Lowy said there had been little improvement in Australian retail conditions so far in 2013.
“Retail sales growth in Australia was subdued in 2012 and that trend is continuing in 2013 given the lower level of consumer confidence which has existed for some time,” Mr Lowy said.
The forecast distribution of 51 cents per security in 2013 was unchanged from Westfield’s first quarter update issued on May 13.
Westfield closed down 10 cents at $11.82.
