SYDNEY (Reuters) – Shareholders of struggling Australian retailer Myer Holdings Ltd (MYR.AX) voted down its executive pay proposals on Friday, in a revolt led by billionaire investor Solomon Lew that put the board on notice to start delivering on its turnaround strategy.
The move marks an escalation of a battle between the 117-year-old department store chain and its biggest shareholder, who has been scathing in his criticism of the board’s response to new online competitors and stagnant retail sales growth.
While he failed to convince shareholders to give him three seats on the board, Lew’s insurrection against the executive remuneration report opens the way for a board spill next year. Under Australian law, companies must give shareholders the option to replace the board if the pay proposals are rejected two years running.
“We have sent the Myer board a very strong message: their time is up and change is on its way,” Lew, whose company holds 10.8 percent of Myer, told reporters after the meeting.
“I never heard one apology to shareholders of the massive destruction of their investments. In all my time, I have never seen a worse situation.”
“If I was Myer director, I’d be saying there’s a fair part of our shareholder base who are not impressed with how we’re performing,” Governance Institute of Australia CEO Steven Burrell told Reuters.
“That message would have got through.”
(This story fixes spelling of fazed in seventh paragraph.)
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