This article is from the Australian Property Journal archive
GPT has poached Frasers Australand's chief Bob Johnston to replace outgoing CEO Michael Cameron.
As part of his contract, Johnston has given a six-month resignation notice to Frasers Australand. The parent company, Singapore`s Frasers Centrepoint announced that Johnston would be replaced by Rod Fehring, who is currently general manager of the residential division at Australand.
Johnston will commence as GPT`s new CEO and managing director no later than 25 January 2016. It is not a fixed term contract and he will take home $1.4 million a year.
The agreement provides for the payment of $500,000 in performance rights which will be subject to a holding lock and the award of up to $829,000 worth of performance rights, 50% of which will vest subject to Johnston not having resigned or had their employment terminated in circumstances of serious misconduct after the first year and the balance after two years.
His contract also includes a short term incentive target for the 2016 calendar year of 100% of fixed remuneration with a maximum opportunity of 125% of fixed remuneration based on achievement against key performance indicators.
Furthermore, the agreement provides for participation in GPT’s 2015 long term incentive arrangements, valued at $2,100,000.
GPT Chairman Rob Ferguson said Johnston was been selected by the board following an extensive candidate search.
“The board conducted a thorough process which included very strong internal and external candidates. All internal candidates were considered by the board to be of a high standard and remain an important part of the group’s future. Johnston was chosen for the skills he brings to the group which will enhance the overall strength of GPT to ensure its future success.
“Johnston is the right choice to lead GPT as the group looks to capitalise on its strong position in the AREIT sector,” Ferguson said.
“Johnston brings a wealth of experience in the property industry and we are confident that he will successfully lead GPT in its next phase of growth.
“The business is in very good shape. Under Michael Cameron’s stewardship, GPT has grown to become one of the largest owners of office properties on Australia’s eastern seaboard, it has built a strong performing, high quality retail portfolio, proven capability in logistics and a highly regarded funds management platform,” he added.
Johnston said that it was a privilege to be given the opportunity of further developing the enviable platform that exists today.
“GPT has strong market positions in retail, office and logistics. I will build upon these strong foundations and take an active position in creating product to grow the business across these sectors over the medium term.
“I am passionate about property, people and performance. I am looking forward to assuming the role as soon as possible and further consolidating GPT’s position as one of Australia’s leading property and funds management businesses,” Johnston said.
Cameron announced his resignation in April to become the boss of Suncorp Group. He is due to commence his new role in October. He said group is now be focused on a smooth transition to the new CEO.
“I believe the Board has made a good choice in appointing Bob to deliver continued success for the Group,” Cameron said.
Johnston joined Australand seven years ago, jumping ship from Lend Lease. His career in property spans 28 years and he held a number of senior management positions with Lend Lease, including as global CEO of Bovis Lend Lease, COO of Lend Lease Real Estate Investments in the USA and CEO of Bovis Lend Lease Asia Pacific.
He is also at the forefront of important industry initiatives including the Property Industry Foundation and is a member of the Property Male Champions of Change established by the Property Council of Australia. He holds a Bachelor of Electrical Engineering degree (First Class Honours) from James Cook University, Townsville, North Queensland.
Australian Property Journal
