Goodman Group, Australia’s largest warehouse and data centre developer, is expected to avoid a second strike and potential board spill at its upcoming annual shareholder meeting after reducing executive pay packages. According to the Australian Financial Review, the move comes despite some major superannuation funds being advised to vote against the company’s remuneration report.
Led by founder and CEO Greg Goodman, the $86 billion global logistics and data centre giant employs over 1,000 staff and is known for rewarding its people above industry averages. The company’s latest disclosures show employees earned an average of $682,000 over the past year. Greg Goodman’s own remuneration was cut from $26.7 million to $20.3 million, a decision that appears to have eased investor concerns.
While Ownership Matters and the Australian Council of Superannuation Investors (ACSI) recommended voting against the remuneration plan, CGI Glass Lewis and Institutional Shareholder Services (ISS) backed it, making a second strike unlikely. All four governance advisory firms have urged shareholders not to support a board spill.
Goodman Group Chairman Stephen Johns said the board remains mindful of investor sentiment, noting that the CEO received no short-term incentives and an 11% reduction in long-term incentives. “The board remains acutely aware of the views of certain proxy advisors and some investors,” he said.
The company recently reaffirmed its 9% earnings growth forecast, supported by an expanding global portfolio and growing investment in data centres. In a recent report, Goodman Group posted a $2.3 billion operating profit for FY25 and a 9.8% EPS rise, underscoring strong fundamentals despite share price declines of around 16% in the past year.
As Goodman Group scales up its data centre ambitions, forecasting the sector to represent three-quarters of its $17.5 billion project pipeline next year, the balance between rewarding leadership and meeting shareholder expectations remains central to its governance story.
Related Articles
