Department store owner Myer has triggered board renewal, announcing that long-serving chairman and retail industry veteran Howard McDonald will step down in October in favour of new director and chairman-elect Paul McClintock.
And the changes will also see a return to the fore of the famous Myer family that founded the department store 112 years ago with director and Sidney Myer descendent Rupert Myer appointed deputy chairman.
Mr McDonald led Myer through its transformation from private equity ownership three years ago to its float on the sharemarket in November 2009, drawing some criticism from investors at the time for being rewarded with a $1.9 million "exertion payment" for his work on the public offer.
As part of the rejuvenation of its boardroom Myer has also appointed Ian Morrice, currently on the board of Metcash, as a new non-executive director.
Myer said this afternoon that Mr McDonald had decided to retire from the board in October. His timing follows the extension of the contract of current Myer chief executive Bernie Brookes through to until August 2014.
"The board and I share a desire to ensure continuity of leadership over the period to that date and beyond," Mr McDonald said.
According to Myer's 2011 annual report, Mr McDonald owns 2.074 million shares in the company, valued on Myer's closing price at $3.88 million. His total remuneration in 2011 was $503,187 against $2.436 million in 2010.
Mr McClintock,currently chairman of Medibank Private, COAG Reform Council, Thales Australia and a director of Perpetual, will take over the Myer chairman role on Mr McDonald's departure. To help lighten his work load Mr McClintock will retire from COAG and Perpetual.
Shares in Myer closed up 2.5 cents at $1.87.