Myer has nominated heavy-hitters Gary Weiss and Olivia Wirth to join its board

Billionaire Solomon Lew has secured effective influence over half of the Myer board, setting up an interesting dynamic ahead of the retailer’s annual meeting next month.

Solomon Lew with Gary Weiss.

Retail veteran Solomon Lew has secured effective influence over half of the Myer board, setting up an interesting dynamic ahead of the company’s annual meeting next month where the department store retailer faces a second potential strike vote against its remuneration report.

With Mr Lew leading the charge, the Myer board copped a huge 45.08 per cent protest vote against its remuneration report last year, setting the company up for a possible second strike and subsequent spill resolution should the votes flow against the report again this year.

Mr Lew has been a vocal critic of strategy at the retailer in recent years, and has backed a number of protest votes against the remuneration report, with the company, for example, notching up back to back protest votes in 2017 and 2018, and narrowly avoiding a third in a row in 2019.

However the retailer on Monday announced a board refresh, backing in long-time Lew confidante and friend Gary Weiss who has a storeyed history in both retail and property, along with Qantas Loyalty chief executive Olivia Wirth for nomination to the board.

Both new directors will have the support of Mr Lew’s Premier Investments, which controls 28.8 per cent of the Myer share register, and will join Premier appointee Terry McCartney who joined the board last year.

Premier said on Monday it would vote in favour of all directors standing for election at the annual meeting in early November, including non-executive director Ari Mervis who will be standing for election to the role of chair upon the retirement of incumbent JoAnne Stephenson.

This will likely largely avoid the scenario which played out last year in which Ms Stephesnon and fellow director Jacquie Naylor attracted votes higher than 43 per cent against their re-election.

Solomon Lew with Gary Weiss during the 70th Birthday Celebration of Arnold Bloch Leibler at the Grand Hyatt in Melbourne. Aaron Francis / The Australian

Mr Lew’s nominee, Mr McCartney, also attracted significant opposition to his election last year, with 38.8 per cent of votes cast against his election to the board.

Premier on Monday refused to comment to The Australian when asked whether it had formed an opinion as to how it would vote on the remuneration report, and both Dr Weiss and Ms Wirth declined to comment on their nominations to the board.

But a spokesman for Premier said it was supportive of the Myer’s efforts to refresh the board.

“Last year Premier nominated Terry McCartney to the board and we believe his retail credentials have been invaluable,’’ the spokesman said.

“With regard to the new proposed directors we were pleased to note their strong property, commercial, consumer and loyalty credentials.

“We intend to vote in support of all proposed and existing directors standing for election to the board at Myer’s upcoming AGM.’’

Dr Weiss, who also chairs Ardent Leisure, Cromwell Property Group and Estia Health, is a long-term confidante of Mr Lew, having previously served on the Premier Investments board.

He has vast experience across retail and other industries, and also previously sat on the board of Westfield Group, Joe White Maltings as chairman, The Straits Trading Co in Singapore, and is a commissioner of the Australian Rugby League Commission.

Ms Wirth has been the chief executive of Qantas Loyalty since 2018, and has held a number of senior roles at the airline since 2009 including as chief customer officer and group executive for government relations and corporate affairs. She was at one time favoured to be a potential replacement for former managing director Alan Joyce.

Qantas Loyalty CEO Olivia Wirth. Picture: AAP Image/Dan Himbrechts

While Myer, like other retailers, is facing headwinds from high interest rates and broad cost of living pressures, it identified in its recent profit results announcement that its loyalty program, Myer One, which has more than seven million members, was an important contributor to its results. Myer delivered a “strong” set of results last month, posting an 18.2 per cent increase in full year net profits to $71.1m, with its CBD stores its strongest channel, increasing sales revenue 30 per cent in 2023, or 14.4 per cent on a comparable sales basis when lockdown periods are excluded from the prior year.

Chief executive John King warned at the time that sales had turned negative in July and August, but also predicted a strong Christmas period for the retailer.

In the company’s notice of meeting for its AGM, also released on Monday, Ms Stephenson said the company had delivered its best full year sales results since 2005 last year. “The company continues to be well-placed to deliver the future plans and growth opportunities under the Customer First Plan,’’ she said. “Myer’s multichannel offer remains a key strength, underpinned by a leading customer loyalty proposition in Myer One.’’

The annual report, also released on Monday, shows Mr King was paid a base salary of $1.2m and a total of $2.45m once incentive payments and other benefits were factored in. This is down from $2.58m the previous year.

Myer shares closed 3.8 per cent lower at 49.5c.