By Emma Koehn
Retail billionaire Solomon Lew has scored a victory in his pursuit of a seat at Myer’s board after his nominee Terry McCartney secured the support of shareholders to become a director of the department store.
Myer’s annual general meeting on Thursday set the scene for the next chapter in the long-running battle between Lew and the retailer’s management. Lew, whose Premier Investments now owns close to 23 per cent of Myer, has long championed McCartney as a valuable addition to the board given he has previously delivered record profits for the retailer as boss of Myer Grace Bros.
While Myer has managed to improve its performance over the last 12 months, Lew maintains the retailer’s management still has a long way to go before it can execute a proper turnaround.
Terry McCarthy and Solomon LewCredit: Jessica Hromas
Despite two proxy advisory firms, ISS and CGI Glass Lewis, recommending shareholders vote against his election, McCartney was able to secure the required votes on Thursday. Proxy votes ahead of the meeting showed 36.85 per cent of votes in favour of adding him to the board, a number which grew to 61.22 per cent, once Premier Investment’s stake was also moved in support.
Myer chair JoAnne Stephenson and director Jacquie Naylor were also re-elected to the board on Thursday.
Myer chairman JoAnne Stephenson was re-elected to the board.Credit:
Lew’s push for a board seat has led to market speculation about a possible takeover of the Myer business. Asked during Thursday’s meeting whether he thought the company should be sold off or taken over, McCartney said he thought Myer had strong brand equity, and he wanted to contribute his expertise for the long term.
“I know there has been commentary. I have come in because I want to listen to the team, understand, add value to that plan going forward,” he said.
“I don’t see it as being sold off - I see it as a business that has found its legs again. Hopefully, I can add some value to that.”
Potential conflicts of interest have been a focus ahead of the meeting’s vote, given McCartney is a non-executive director of Premier, which is a competitor to Myer in some apparel categories.
The Myer board declined to make a recommendation to shareholders about how they should vote on the motion to elect McCartney. However, Stephenson said multiple times during Thursday’s meeting that the board agreed any conflicts of interest could be managed.
“We look forward to working with terry on the board,” she said.
In a statement after the meeting, McCartney thanked shareholders for supporting his nomination.
“I believe my long history as a retailer and in particular, my department store experience, will be of benefit to the business and its stakeholders,” he said.
Myer boss John King was optimistic about the Christmas trading season as he updated investors on Thursday, highlighting that the company had seen record sales growth since the start of this financial year.
“We’re well-placed to meet market volatility,” he said.
Myer shares performed strongly even as the broader market fell on Thursday, closing 4.2 per cent higher to 62.5 cents.
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