The International Union of Operating Engineers urged the U.S. Securities and Exchange Commission to investigate Douglas Emmett Inc.'s alleged failure to release required information about independent director Thomas O'Hern.
The union's letter to the SEC alleged that the past 10 proxy statements filed by Douglas Emmett failed to reveal that O'Hern's employer, Macerich Co., is a tenant of Douglas Emmett, involving a multimillion-dollar lease.
O'Hern, who is senior executive vice president, CFO and treasurer of Macerich, also serves as chair of Douglas Emmett's audit committee.
Macerich and Douglas Emmett are also embroiled in a lawsuit in Los Angeles County over a five-year lease extension, further obscuring matters, the letter claims.
The letter went on to state that O'Hern "cannot effectively" represent the interests of shareholders of both companies while the parties are in litigation.
Stuart McElhinney, vice president for investor relations at Douglas Emmett, said in an email that "contrary to the assertions of the union, and although the specific rules cited by the union are not applicable, we have made full and appropriate disclosure to our investors of the fact that Mr. O'Hern is employed by Macerich and that Macerich is a tenant of ours."
