28 December 2011 – Darren Steinberg will replace Victor Hoog Antink as chief executive officer and director of DEXUS Funds Management Ltd, after Mr Hoog Antink announced he would retire in March next year.
Mr Steinberg was recruited from his role as managing director of Colonial First State Global Asset Management, with ç previously head of wholesale property funds at Colonial, announced as new MD.
Mr Victor Hoog Antink will have notched up eight years at Dexus and 30 years in the property industry. He said today he informed the board earlier this year that he would seed to pursue new personal opportunities including a career as a non-executive director.
“The board and I believe now is the right time to handover to a new chief executive to lead Dexus in the next stage of growth,” Mr Hoog Antink said.
“It has been an honour to lead DexusS since 2003 and I am very proud of what we have achieved together. I leave confident in the knowledge that the group is well positioned to build on the successes achieved to date with a great team and great properties to continue to create value for shareholders.”
Chair of Dexus Chris Beare said Mr Hoog Antink had “led the creation of one of Australia’s leading property groups.”
Key achievements had included development of “some of the country’s best and most sustainable office properties”, such as 1 Bligh Street in Sydney and 123 Albert Street in Brisbane, and Mr Hoog Antink’s handling of the group during the global financial crisis which saw DEXUS emerge “with one of the strongest balance sheets and capital management frameworks in the sector,” Mr Beare said.
The group had grown from $10 billion to $14 billion of properties under management and the DEXUS Wholesale Property Fund has recently been recognised as the best performing wholesale property fund, he said.
New DEXUS chief Mr Steinberg has more than 20 years’ experience in the property industry with five years at CFSGAM and, prior to that, senior property roles with Stockland, Westfield, Lend Lease and Knight Frank.
He is also national president of the Property Council of Australia, a Fellow of the Royal Institution of Chartered Surveyors and a member of the Australian Institute of Company Directors.
Alongside the announcement Dexus also released a statement of the main terms and conditions related to the new appointment.
Fixed yearly salary of $1.4 million a year which includes compulsory superannuation, packaged benefits and fringe benefits tax (if applicable).
Performance Payment (DPP)
In the first year, according to the remuneration mix, the incoming Chief Executive Officer will be eligible for performance tested pay of $1.2 million pro rata, which equates to 30 per cent of his target remuneration, as described in the 2011 Remuneration Report.
Deferred Performance Payment
In the first year, according to the remuneration mix, the incoming chief executive officer will be eligible for performance tested pay of $1.4 million pro rata, which equates to 35 per cent of his target remuneration, as described in the 2011 Remuneration Report.
The Board may agree to vary the proportion of performance tested pay the incoming CEO is eligible to receive in line with the Group’s short and long term performance focus.
The incoming CEO will be compensated for remuneration foregone when the executive ceased employment with his current employer. A foregone remuneration payment of $1.5 million will be made to the incoming CEO in the first month after commencement with the Group. In addition,in the first full year, the Board has agreed to performance test an additional $500,000 of remuneration forgone, in accordance with the terms of the DPP.
The incoming CEO service contract may be terminated by the executive with six months’ notice, or by the Group by providing 12 months’ notice or payment in lieu of notice. The Group may also terminate the contract without notice for cause. The incoming Chief Executive Officer is not entitled to a severance payment (excluding payment for statutory and other benefits and any payments in accordance with the terms of Group’s incentive plans).
Outgoing Chief Executive Officer entitlements
Details of the benefits due to the outgoing CEO were disclosed in the 2011 Remuneration Report. When the outgoing CEO retires on 31 March 2012 he will be entitled to receive the equivalent of 12 months’ fixed remuneration.
While the limit on payments to outgoing executives under the Corporations Act 2001 does not apply to the Group, the benefits due to the outgoing Chief Executive Officer do not exceed this limit.