Performance rights valued at $7.38 each set to align executive incentives with shareholder returns
Dexus (ASX: DXS) has outlined a proposal for the grant of 406,504 Performance Rights to Group Chief Executive Officer Ross Du Vernet under the company’s FY26 Long-Term Incentive (LTI) Plan. The proposal will be put to security holders for approval at the upcoming 2025 Annual General Meeting (AGM).
Dexus CEO Ross Du Vernet’s FY26 LTI grant aims to align incentives with investor returns
The performance Right value has been calculated at: 7.38, according to the 25-trading-day volume-weighted average price (VWAP) after the announcement of the FY25 results of the company. The goal of the grant is to ensure that executive compensation is linked to long term shareholder value creation.
The FY26 Long-Term Incentive Grant
FY26 LTI grant is a subset of the overall strategy used at Dexus whereby executive performance is tied to total shareholder returns and provision of sustainable value within the diversified real assets platform.
The recommended granting of 406,504 Performance Rights to Mr Du Vernet will be performance based with financial and operational targets over a series of years as proposed in the AGM Notice lodged with the ASX on 25 September 2025. They usually involve the earnings per security growth, the return on equity and the total shareholder return compared to the peers.
The FY26 LTI structure is based on the fact that Dexus believes in performance-based leadership incentives and long-term alignment with the investors, as the company said in its release.
The Announcement highlights are as follows:
- Grant Size: 406,504 Performance Rights to be offered in FY26 LTI.
- Value per Right: $7.38 on 25 days VWAP after FY25.
- CEO Recipient: Ross Du Vernet
- Approval: To be voted at 2025 AGM by the security holders.
- Drive: Match leadership compensation with long-term stockholder returns.
The proposal is further described in Item 2 of the Explanatory Memorandum to AGM Notice.
Working Strategy/Economic Situation.
The announcement is in the wider context of changing real asset valuations and investor attention to governance and remuneration based on sustainability. The LTI program of Dexus reiterates the continued attention of the company to attract and retain the most senior executive talent in the competitive real estate investment environment.
There has been a phase of adaptation in the property sector of Australia with the property investors inclining to associate with businesses that exhibit strong capital management practices and clear incentive schemes in response to macroeconomic pressures. The diversification of Dexus into office, industrial, healthcare, retail and infrastructure assets gives Dexus the ability to sail through these market cycles and continue its good governance practices.
An industry analyst who was familiar with the announcement stated that performance-based reward structures are still part of making management accountable and shareholder aligned.
About Dexus and Its Real Asset Platform
Dexus and Its Real Asset Platform Dexus is a widely recognized and impactful Australian corporation specializing in real estate and property development.<|human|>Dexus and Its Real Asset Platform Dexus is a globally known and influential Australian company that deals with property development and real estate.
Dexus operates one of the largest real asset platforms in Australasia worth 50.1 billion. Its listed portfolio in terms of direct and indirect ownership is in the range of property and infrastructure assets and its funds management business is linked to the third-party capital and premium investment opportunities, totalling 14.5 billion dollars and 35.6 billion dollars, respectively.
This development pipeline of 13.3 billion dollars offers the company recurrent chances to expand listed and managed portfolios, which further supports the long-term value creation strategy of the company. The platform business strategy of Dexus combines the expertise of the asset management, development and funds management capabilities to create stable returns to the investor.
Its sustainability plan addresses three main pillars Customer Prosperity, Climate Action, and Enhancing Communities, in all of which the group thinks it can produce the most material positive impact.
ENB Market and Investor Prospective
Dexus shares were down 0.346% on the day, as at 8 October 2025, at a bid-offer span of 7.190 to 7.200. The market capitalisation of the company is at $7.76b.
Dexus has proven to have a consistent recovery in its share price throughout the year 2025 due to the rising sentiment in the property investment industry, and investor confidence in diversification strategy of the group. According to observers, consistency in governance and clear-cut remuneration strategies are some of the reasons why the market remains trustful despite unpredictable economic trends.
Dexus is still considered by institutional investors as a pointer of the trends in Australian real estate investment, especially with its exposure both in the listed and unlisted markets in the major urban and regional growth centers.
Shareholder Engagement and Governance
The FY26 LTI proposal is an extension of the efforts done by Dexus to make sure that the executive compensation is based on performance and in line with the expectations of the shareholders. The offer of grants to Mr Du Vernet subject to confirmation by shareholders demonstrates trust in the management to ensure growth by ensuring the use of capital is well disciplined and the portfolio optimised.
This proposal is to be voted during the 2025 Annual General Meeting according to which other important governance and remuneration issues will also be discussed by the shareholders.
Also Read: St George Secures Government Support for Pilot Plant at Araxá Project in Brazil
Final Thoughts
The FY26 LTI proposal presented by Dexus reveals its long-term value creation and sustained focus in advancing its objectives, transparency in governance, and alignment with the returns of shareholders. The strategic remuneration framework of the company is the core of the company sustaining the confidence of the investors and supporting the future performance of the company as the company persists in growing its integrated real asset platform and development pipeline.
FAQs
1. What is Dexus proposing in its FY26 Long-Term Incentive Plan?
Dexus (ASX: DXS) is proposing to grant 406,504 Performance Rights to CEO Ross Du Vernet under its FY26 Long-Term Incentive (LTI) Plan, subject to shareholder approval at the 2025 Annual General Meeting.
2. How is the value of Dexus performance rights determined?
The value of each performance right under the FY26 LTI Plan is $7.38, calculated using the 25-day volume-weighted average price (VWAP) following the release of the company’s FY25 results.
3. Why is the FY26 LTI grant significant for Dexus investors?
The FY26 LTI grant links executive rewards directly to long-term shareholder returns and performance metrics, aligning management incentives with investor interests in the company’s diversified real asset portfolio.
4. What does Dexus’s investment portfolio include?
Dexus manages a $50.1 billion Australasian real asset platform covering office, industrial, retail, healthcare, infrastructure, and alternative investments, supported by a $13.3 billion development pipeline.
5. When will Dexus shareholders vote on the FY26 LTI proposal?
The proposal will be presented for approval at the 2025 Annual General Meeting, allowing shareholders to review and vote on the FY26 Long-Term Incentive grant to the CEO.
