Kingston Properties to finalise $30m executive payout to Fayval Williams
Kingston Properties Limited (KPREIT), which offered a $32-million settlement to former executive director Fayval Williams for services rendered, expects to finish that payout later this year.
Williams, now a state minister in the finance ministry, resigned from her post as executive director of Kingston Properties last October to contest a seat in Parliament, which she won in the February polls.
"The agreement with the executive director was to pay this amount over a 24-month period. Payments have begun and will conclude this year," said KPREIT Chairman Garfield Sinclair via email on Wednesday.
"The entire amount was expensed in the second quarter of 2015, when the settlement was finalised," he said. Calls and messages to Williams' phone went unanswered up to press time.
In January 2010, KPREIT designed a long-term incentive plan (LTIP), which entitled the executive director to an allocation of shares based on the achievement of certain profit performance targets. The company explained that the LTIP plan was not implemented and that it was mutually agreed between Williams and the board that the amount of $30 million be paid in lieu and in full settlement of the non-implementation of the LTIP. The final amount of $32.85 million includes statutory contributions.
"Yes, it was paid in lieu of being able to execute the actual LTIP, which was meant to reward the woefully underpaid executive director for the six years since inception of the public company," said Sinclair.
"It wasn't ultimately implemented and this was a cash settlement in its place that approximated to the value of shares that would have been distributed and vested by the date of the settlement," he said.
Over the eight years of its existence, the company's annual net profit increased from $14 million in 2008 to some $105 million in 2015. Total equity increased from $405 million to $1.5 billion.
The REIT's total comprehensive income as a percentage of average equity inched up from 10.78 per cent in 2008 to 11.1 per cent in 2015.
Williams is a chartered financial analyst. She holds an MBA from the Wharton Business School at the University of Pennsylvania and a bachelors of arts from Harvard University.
Her government portfolio at the finance ministry includes oversight of Jamaica's economic agreement with the IMF.