28/11/2012 - 13:45

First strike for Peet

28/11/2012 - 13:45

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First strike for Peet

Struggling Perth-based property group Peet has suffered its first strike, with 34 per cent of shareholder proxy votes opposing the adoption of the company’s remuneration report at the company’s annual general meeting in Perth today.

Peet shares sat at $2.35 in early 2010 but have since substantially declined, dipping below 70 cents in July amidst an ongoing downturn in the housing market.

Chief executive Brendan Gore chose to forego his bonus and annual pay rise in light of Peet’s recent poor performance.

He said the last 12 to 18 months had been the most difficult the company had experienced in 20 years, as weak consumer confidence hampered investment, but added that conditions were ripe for a recovery in the local housing market with a tight rental market and low interest rates.

“It is a cyclical low and we think we’re probably at the bottom,” he said.

“When this market does start to normalise, it rebounds quite strongly.”

A vote of at least 25 per cent against the company’s remuneration report at next year’s AGM would constitute a second strike, potentially setting the scene for a board spill.

A representative of the Australian Shareholder Association protested against a motion to allocate two million performance rights to Mr Gore, claiming that the board’s performance hurdles were “ill-conceived” and insufficient.

The motion was passed with the support of 87 per cent of shareholders, while 84 per cent of shareholders voted in favour of increasing the director’s fee pool from $300,000 to $900,000.

Peet shares were up seven cents to $1.04 at close of trade.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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