Myer survives spill motion after second strike
MYER has been handed a second strike on executive pay but the struggling department store chain looks set to avoid a board spill.
More than 37 per cent of proxy votes were cast against Myer’s remuneration report at its annual meeting in Melbourne yesterday, well over the 25 per cent required for a second strike.
But 63 per cent of proxies opposed a subsequent spill motion despite a long-running public campaign by major shareholder Solomon Lew to oust the board.
Myer chairman Garry Hounsell said shareholders had backed the board and its strategy by voting down the spill motion, but acknowledged it had been a challenging period for the company.
“We’re obviously disappointed by this result,” Mr Hounsell said of the second strike.
“We’re of no doubt that this result reflects broader issues ... as always, we will consult with shareholders on changes and improvements we can make this year.”
Mr Lew had been agitating for an overhaul at the top of the ailing retailer since his company Premier Investments became its largest shareholder in March 2017 with the purchase of a 10.77 per cent stake.
Mr Hounsell blamed Myer’s subdued share price partly on Premier’s “vindictive” campaign.
“The reality is it’s not a campaign against the board, it’s a campaign against the company,” he said. “On one hand Mr Lew says he supports chief executive John King ... on the other hand he lobs bombs that make John’s job harder and harder and harder.”
He said it would be a “sad day for shareholders” if Mr Lew gained control.
Myer shares were up 2.33 per cent to 44 cents at 1310 AEDT, still a way off the $3 mark they were at in 2013.