Lew’s threat to Myer board

Major shareholder claims scalp in bid for major cleanout

RETAIL billionaire Solomon Lew has threatened to call an extraordinary meeting to oust the Myer board after claiming the scalp of its chair and delivering a “first strike” against its remuneration report.

The unrelenting push by Myer’s biggest shareholder to topple its board came as acting chair Joanne Stephenson appealed for a truce, saying “a war of words” in the media was damaging the department store chain.

In a dramatic day for one of the nation’s most famous businesses, Myer yesterday announced Garry Hounsell was standing down as chair and leaving the beleaguered retailer. The announcement came just hours before Mr

Hounsell had been scheduled to stand for re-election as chair at Myer’s general meeting.

Mr Hounsell said he was retiring after it became clear that Myer’s two largest shareholders – Mr Lew and fund manager Geoff Wilson – would not vote for his re-election.

“I will not allow my ongoing tenure as chairman to be a distraction to the hard work of the executive team,” Mr Hounsell said.

Mr Lew said Mr Hounsell’s resignation was “the green shoot” of recovery that Myer shareholders had long been waiting for.

“Mr Hounsell’s ousting signals to the entire board that their time is up,” Mr Lew said.

“We expect the remaining Myer directors will now indicate their intention to step aside in an orderly manner or face an extraordinary general meeting at which they will be certainly dismissed.”

Mr Lew said Premier would consult with other major Myer shareholders about the makeup of a new board. About 33 per cent of shareholders voted against Myer’s remuneration report.

If more than 25 per cent vote against next year’s report it would result in a “second strike” that could trigger a board spill. Mr Wilson, who has historically supported the Myer board, said a new chair would allow the retailer “to benefit from clean air following a challenging period”. Myer shares fell 0.5c to 23.5c.