John Wylie’s firm has been calling for major changes at the property group. In a letter to investors, it makes clear its views of the company’s chief executive.
Already a subscriber?The activist investor demanding major changes at Lendlease is now targeting the embattled Australian property giant’s chief executive and chairman, a letter and presentation to its investors reveal.
“As group head of strategy and M&A, was materially involved in a leadership role in the Valemus acquisition in 2010, which has led to losses of over $1 billion to Lendlease,” the presentation reads, adding he has been paid $33 million since 2009, even as performance declined. Lendlease has called in Morgan Stanley, Gresham and Macquarie as it considers what changes it can make ahead of an investor day in late May. The company has already sold its master planned communities business to Stockland for $1.3 billion, and its services division for $310 million.
How Lendlease accounts for profit has been a long-time source of concern among some investors, who say there is a mismatch between earnings and cash flow. Ownership Matters, a proxy advisory, has calculated there was a “gap” of more than $4 billion between reported profits and cash flow in the decade to the end of June last year.
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