Hello fellow Verde shareholders,
One of my other investments, Riocan Real Estate Income Trust, received a failing grade on its recent "Say on Pay" resolution at the AGM. Today Riocan announced the results of the review they undertook in light of the negative feedback from unit holders (shareholders). This included the following statements:
"Immediately following the 2021 Annual Meeting, the Committee and Management assembled a team to address unitholder concerns regarding RioCan’s 2021 executive compensation program. The Committee then had a series of meetings with RioCan’s investors. The purpose of the discussions was to better understand unitholder concerns with the Trust’s 2021 executive compensation structure.
The Committee engaged in an extensive investor outreach initiative immediately following the Meeting. Between June and September, the Committee met with and solicited feedback from RioCan’s largest unitholders. The purpose of these meetings was to ensure that the Board had a comprehensive understanding of unitholder concerns with the Trust’s compensation program. The Committee reached out to the Trust’s 30 largest unitholders, representing approximately 25.5% of RioCan’s outstanding units. To date, the Committee has held 16 meetings with unitholders, representing approximately 18.0% of RioCan’s outstanding units. The Board intends to continue this outreach."
I believe this is how a mature public company should deal with critical feedback received from its owners - including having added a "Say on Pay" motion as part of the AGM process to facilitate the feedback in the first place. I have previously raised this issue with CV and respectfully requested Verde add a "Say on Pay" resolution as recommended by the TSX. As we saw with the 2021 AGM, Mr. Veloso had no interest in adopting this "best practices" initiative, and has instead followed the practice of simply ignoring any communication from shareholders with who he prefers not to engage.
You can read the rest of the Riocan story here:
RioCan Real Estate Investment Trust Announces Changes To Executive Compensation Program | REIT REPORT
With the Verde Shareholder Group representing approximately 23% of the outstanding Verde shares, we would be happy to engage with the Verde Board compensation committee to provide our feedback on teh current executive compensation practices adopted by the Company. Unfortunately, the Company continues to ignore any and all communications submitted on behalf of this group of committed shareholders.
All the best.
S