Richard Umbers Steps Down As Myer CEO

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By Published On: February 14, 20180 Comments

Richard Umbers has stepped down as Myer chief executive with the retailer’s chairman Garry Hounsell appointed executive chairman as it immediately searches for a new CEO and MD.

In a major announcement, Myer Holdings has confirmed that chief executive officer and managing director, Richard Umbers, has today stepped down from his role amid continued underperformance and leadership concerns. Umbers will serve a 12 month notice period.

Chairman Garry Hounsell, has been appointed as executive chairman with immediate effect. “A search will commence immediately for a new chief executive officer and managing director,” Myer wrote in a statement release.

This morning Hounsell said the decision was made due to a “turnaround in the company’s performance” and the “board has determined that it is in the interests of all shareholders for there to be a fresh approach to drive our future direction”.

“At the time of my appointment as chairman in November 2017, I said I was impatient and this announcement reflects my desire to drive, first-hand, the urgency required to deliver shareholder value. On behalf of the board, I thank Richard for his hard work and commitment during the past three years and wish him well for the future.”

Myer has confirmed that Richard Umbers is leaving the company “in accordance with the contractual terms set out in the 2017 Remuneration Report”.

The department chain also confirms Hounsell’s appointment as executive chairman will take effect from 14 February 2018 and continue until the appointment of a new chief executive officer and managing director, or as otherwise agreed with the board. Myer says the performance of Hounsell’s functions will be overseen by a committee of the board appointed for that purpose during that period.

Hounsell will be paid a salary during this period of an amount to be determined by the board after taking external advice as to the amount which is appropriate in the circumstances and to be advised to the market when determined. In a statement, Myer also confirmed that Hounsell will not participate in any management incentive schemes nor will he be entitled to non-executive director’s fees for the duration of the appointment and he will not receive any additional payments on conclusion of the appointment.

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