Incredible shrinking Sunland: Bosses take pay cut in developer’s sell-off strategy
Sunland Group has decided to slash the pay of its most senior executives because they don’t have enough work to justify their salaries.
Soheil and Sahba Abedian have had their pay cut by 40 per cent
The company decided in 2020 that the market was never going to provide a value that reflected the worth of the company and has since been selling off its assets and returning the funds to shareholders.
But it has also made the decision to cut the pay of executive chair Soheil Abedian and Sahba Abedian by 40 per cent. In 2021 their remuneration was $656,000 and $805,000 respectively which was down significantly from the previous year.
The cut equates to a cut of $262,000 for Soheil Abedian and $322,000 for Sahba.
Soheil also owns more than 50 million shares in Sunland and Sahba 9 million.
Two of the company’s directors, Rebecca Frizelle and Vahid Saberi, have also resigned.
The pay cut was ordered by the board because the Abedians were only working three days a week for Sunland.
“Directors believe it is appropriate the board restructures in order to reduce overhead expenses so they commensurate with the size of the group’s operations,” Sunland told the ASX.
Soheil Abedian said this strategy was a natural progression to deliver on the company’s plan.
Executive staff would also have their remuneration “adjusted to reflect their working week”.
Before it made the decision to liquidate, Sunland’s share price was as low as $1.11 and it was hoping to deliver about $2.56 through the strategy. However, a property boom has come along in the meantime and the company’s shares have jumped $2.68.
It also posted a $36 million December half profit, double that of the previous year. It has forecast a $98 million full year profit and said while supply chain issues were forcing up costs, they were being managed.