Myer board survives, just
MYER shareholders have voted to save their board from an embarrassing spill but it has not quelled unrest, with a renewed call for the board to resign immediately.
The board received its second strike against its executive pay report at the annual meeting in Melbourne yesterday but the directors were saved from being dumped.
The meeting, which was dominated by shareholder questions about the stoush between the board and Myer’s largest shareholder Solomon Lew’s Premier Investments, voted 64 per cent not to spill the board.
Although the spill motion failed, it signalled a substantial number of shareholders, 36 per cent, wanted the opportunity to replace the directors.
The remuneration report earlier received a solid second strike, with 37.49 per cent of shares voted against its adoption, beating the hurdle of a 25 per cent ‘no’ vote to trigger a second strike.
“I can’t understand why they didn’t resign today,” Mr Lew said after the meeting.
“It’s only a matter of time, maybe another three or six months, but it will be over for them.’’
Myer chairman Garry Hounsell had earlier told the meeting that Mr Lew had waged a “vindictive” campaign against him and the board which had destabilised staff, suppliers, landlords, bankers and had made it difficult to find new directors.
“There aren’t a lot of directors who are bloody willing to sit on this board with a shareholder like Solomon Lew trying to destroy the company,” Mr Hounsell told the meeting.
Mr Hounsell’s comments were in response to a question about the lack of retail experience of new director Lyndsey Cattermole and why she was the only candidate interviewed.
Shareholders went on to vote a strong 43 per cent against Ms Cattermole’s appointment, while the reelection of director Dave Whittle also received a 36 per cent no vote. After the meeting Mr Hounsell, who would not talk to the media, issued a statement thanking the majority of shareholders for their support.
“They have stood with us to ensure that we won’t let a conflicted shareholder and competitor take control of Myer,” Mr Hounsell said.
“The Myer board will lead the company in a united and cohesive way,” he said.