ASA shuns Lew move

Shareholders urged to vote for Hounsell

THE Australian Shareholders’ Association has advised its members to ignore a push by retail magnate Solomon Lew for a shake-up of the Myer board.

The group, Australia’s peak body for individual investors, yesterday recommended shareholders vote in favour of Myer chairman-elect Garry Hounsell at its annual meeting on Friday.

It has also backed the reelection of Myer director JoAnne Stephenson and election of former Bulgari Australia managing director Julie Anne Morrison to the board.

Mr Lew, whose listed retail conglomerate Premier Investments is Myer’s biggest shareholder, has urged investors to vote against the directors.

He has written to shareholders seeking permission to vote on their behalf, and wants to appoint a number of directors who he says can turn Myer around.

The ASA will cast votes as proxy for about 1 per cent of Myer shareholders.

Its advice to vote with Myer comes after prominent proxy advisers Ownership Matters and CGI Glass Lewis advised their big institutional investor clients to ignore Mr Lew’s assault on Myer and vote in favour of the recommended chairman and directors.

While backing the appointment of Mr Hounsell and Ms Stephenson, the ASA expressed concern about their workloads due to duties on other boards.

It also said Myer’s board

Baby Bunting chief executive Matt Spencer says the retailer downgraded its full-year earnings forecast

generally had “low skin in the game” having not bought enough stock in the company they oversaw – a complaint also made by Mr Lew.

The retail billionaire has been engaged in an increasingly bitter war of words with Mr Hounsell in the lead-up to the meeting.

Premier Investments holds a stake of almost 11 per cent in Myer, having bought in at $1.15 a share earlier this year.

Myer’s share price has since slumped to 72¢, handing Premier a nasty paper loss.

Mr Lew says Myer’s fiveyear turnaround plan has failed and its board lacks the retail experience needed to revive the business. Myer has accused Mr Lew of trying to gain control of the retailer without having to pay a takeover premium – a criticism echoed by some proxy advisers.