Shares in Myer Holdings Ltd (ASX: MYR) were up 8.5% to $0.38 on Monday, after the company announced John King will be the new chief executive officer and managing director.
Mr King has 30 years' experience in the retail sector. He spent the last three years in the United States, consulting for various retailers and participating in start-ups. Previously, he led British department store group House of Fraser for eight years, until the company was acquired by Chinese conglomerate Sanpower in 2014.
King will receive a fixed compensation of $1.2 million a year and $900,000 equity in the form of share rights upon commencement of employment – plus short-term and long-term incentives worth on aggregate up to nearly 200% of his fixed compensation, conditional on performance.
Myer's chairman Garry Hounsell said: "Over the course of his tenure at the House of Fraser, John and his team consistently grew revenues, differentiated the product offering and launched a successful online business, improved EBITDA and reduced the company's debt."
Myer needs a quick turnaround, after three profit downgrades in the space of 12 months culminated in February with the resignation of Richard Umbers, King's predecessor. The company lost nearly 70% of its market capitalisation over the past 52 weeks.
