Lew Heats Up Shareholder Strife Ahead of Myer AGM
Major Myer shareholder, Solomon Lew, has urged fellow owners to vote against the retailers’ remuneration report, triggering a ‘second strike’ and spill of its board, during next month’s AGM.As per The Australian, Lew has written to Myer shareholders, asserting the board has once again failed its obligations, lead by Chairman Gary Hounsell.
Lew has continued his criticism of Hounsell, claiming he’s collected a significant amount of money at the retailer’s expense.
“… Mr Garry Hounsell, having sacked the CEO, Richard Umbers, accepted the role of Myer Executive Chairman earning the equivalent rate of $1 million per annum,” adds Lew.
He asserts new Chief Executive, John King, has a “daunting challenge” ahead of him, hampered by a flailing board.
“We have to remove the failed Myer board and give John King a set of experienced, proven retail and commercial experts to work with,” remarks Lew.
The ‘second strike’ will come after Lew achieved a first strike against Myer at its AGM last year.Lew claims a second strike may trigger a board spill motion, enabling shareholders to vote in new set of “highly-credentialed” experienced directors.
He asserts Myer shareholders are unlikely to receive dividends for an extended period of time, leaving banks in control should the retailer collapse into insolvency.
Lew blames Myer’s board for its tumbling share price, falling profits and sales, driven by a lack of direct retail experience.