CENTRO'S two consecutive chief executives were paid almost $6.5 million last financial year to manage Australia's worst-performing listed property trust, which lost 97% of its security value in the year to June 30.
Former chief executive Andrew Scott, mastermind of the company's complex fund structures and dealings, received a $3 million parting gift after being removed in January.
He had been entitled to a "golden parachute" worth about $7 million, but still ended ahead, with total remuneration, including salary, of $2.9 million.
His successor, Glenn Rufrano, former head of Centro's US division and six months into the top job in Melbourne, was paid $3.56 million last year for his US and Australian roles.
Executive salaries reported yesterday in the annual report preceded a gloomy statement by auditors that there was "significant uncertainty" that Centro would continue as a going concern due to continued reliance on loan extensions.
Heavy borrowing helped make Centro the second- largest shopping centre owner and manager in Australia, and the fifth-largest in the US. But its shares crashed in December when it could not refinance $3.9 billion of debt as the subprime crisis worsened.
Shareholders, whose units closed yesterday at 8.3¢, compared with about $7.50 this time last year, face wipe-out if Centro fails to refinance extensions on $1.2 billion in loans to US noteholders maturing on September 30, and about $2.75 billion by December 15.
A Centro spokesman said an announcement on the extension of the September loans would be made next week.
Chairman Paul Cooper wrote in the annual report that he was "deeply concerned" about the share price, and that there was "no quick fix", especially amid low debt-market liquidity, falling property values and high interest rates.
He flagged a simpler group structure and reduced "interdependencies".
Centro Properties has negative net assets of $238 million and booked a loss of more than $2 billion last financial year, while satellite Centro Retail Trust sank $868 million.
CNP Price at posting:
8.9¢ Sentiment: None Disclosure: Not Held
