6 questions lodged at 2024 Goodman Group hybrid AGM

Q1. The AFR's Chanticleer columnist Anthony McDonald wrote an interesting column about our company yesterday which concluded with the following observation: "Should the tide ever turn on logistics parks, data centres and Goodman Group's incredible business, perhaps investors will look back and wonder whether they cut their Aussie champion a bit too much slack." What did the chair and CEO think of this article? Was it accurate and fair comment or were there errors?

Q2. Did any of the 5 main proxy advisers - ACSI, Ownership Matters, Glass Lewis, ISS and ASA - recommend a vote against any of today's resolutions, including this remuneration report item? If so, what reasons did they give and will you disclose the proxy votes before the debate on each resolution so shareholders can ask questions about the reasons if there have been any protest votes? Please don't say they are confidential. It is standard for companies to be across this detail on the voting recommendations and inform shareholders where relevant.

Q3. A question for the auditor and the audit committee chair on the accounts: "The gap between the $2.05 billion operating profit and operating cash flow was $860 million in FY24. Please explain why this has blown out to a record high and whether it accords with the accounting standards to exclude share based payments to staff from the operating profit number?"

Q4. Goodman's circa 900 employees received $501 million worth of free Goodman Group stock for their good performance in 2023-24, with Greg Goodman the largest recipient. This staggering figure was almost as much as the $567 million in distributions paid to Goodman Group investors over the same period. As the long term CEO and a billionaire in his own right, could Greg please comment on whether these equity payments are getting out of hand and explain why he personally needs to remain in the same extraordinary and unique pay system to keep motivated? Could the chair also comment on whether these numbers quoted by The AFR's Chanticleer columnist Anthony McDonald are accurate?

Q5. Why do the 3 big global index funds - Vanguard, Blackrock and State Street - collectively own more than 25% of our business. Is it because they've oversold Australian property ETFs globally and therefore have to buy up ASX-listed REITS more heavily than any other sector. How do we engage with these 3 giants and are they individually comfortable with our remuneration structures. Corporate voting is not a secret ballot. What have the big 3 done on rem voting today after their main proxy adviser ISS recommended they vote against this rem report item, potentially triggering our 5th strike in 9 years, something no other ASX100 company has managed.

Q6. Any early thoughts on what a re-elected Donald Trump will mean for our business. For instance, if the US corporate tax rate is cut from 21% to 15% as suggested, is that good for us? What was the experience like for Goodman during Trump's first term?

Copyright © 2024 The Mayne Report. All rights reserved

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