Jason Underwood is the CEO of Whiterock REIT, which hasn’t done much of anything for the past five years, although it’s done okay for the past year, if only because it was in more trouble than most during the recession.
Underwood was paid $4.5 million last year, about 98% of that in the form of a bonus. That bonus is based, according to the company’s proxy circular, on “(i) completion of acquisitions and dispositions that fit the Trust’s mandate and growth objectives; (ii) issuance of new equity amounts; and (iii) new or assumed debt financing.”
In other words he was paid a bonus for flipping assets, diluting shareholders and taking on debt.
Staggering is the only word that comes to mind.
And for those who defend him on the grounds that the stock has done well for the past year, only one word describes you: dumb.
No firm will last if it literally pays its CEO millions to destroy shareholder wealth and take risks.
Whiteorck versus the index:
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on Tuesday, May 24th, 2011 at 10:38 pm and is filed under Commentary.
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Whiterock: Another REIT ripoff
Jason Underwood is the CEO of Whiterock REIT, which hasn’t done much of anything for the past five years, although it’s done okay for the past year, if only because it was in more trouble than most during the recession.
Underwood was paid $4.5 million last year, about 98% of that in the form of a bonus. That bonus is based, according to the company’s proxy circular, on “(i) completion of acquisitions and dispositions that fit the Trust’s mandate and growth objectives; (ii) issuance of new equity amounts; and (iii) new or assumed debt financing.”
In other words he was paid a bonus for flipping assets, diluting shareholders and taking on debt.
Staggering is the only word that comes to mind.
And for those who defend him on the grounds that the stock has done well for the past year, only one word describes you: dumb.
No firm will last if it literally pays its CEO millions to destroy shareholder wealth and take risks.
Whiteorck versus the index:
This entry was posted on Tuesday, May 24th, 2011 at 10:38 pm and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.