Solly Lew’s Myer candidate gets the cold shoulder from ISS

Solomon Lew’s Premier Investments has hit out against proxy advisor ISS’ opposition to appointing former Myer Grace Bros boss Terrence McCartney to Myer’s board, labelling its decision “bizarre”.

With the billionaire rag trader and Myer’s incumbent board set to lock horns at the department store operator’s annual general meeting next month, ISS has recommended Myer shareholders to vote against the appointment of McCartney, who was handpicked for the job by Lew.

Lew’s stake in Myer has crept up this year, with the billionaire currently holding close to 23 per cent of the retailer. Having agitated for a change at the top at Myer for some time, Lew in August nominated McCartney for a board position at the company, arguing that his retail expertise were sorely needed at the retailer.

Mr McCartney is a longstanding director of Premier.

While Myer’s board has not made a recommendation to shareholders about how they should vote on the motion to install McCartney, major proxy advisor ISS has advised investors against it.

ISS said in it report that Premier had failed to put forward a compelling case about how McCartney would improve the strategic direction of Myer, and there was no reason why he would “satisfy any skill deficiency the board may presently have”.

Premier has rejected the assertions, highlighting that McCartney had delivered a record profit as the former managing director of Myer Grace Bros.

“We’re disappointed with the bizarre conclusion reached by ISS after they declined an opportunity to meet with Terry McCartney directly earlier this month,” a spokesperson for Premier said.

“It is hard to see how ISS reached its recommendation when Terry’s skills and retail experience are clearly additive to the current board composition. The Myer board does not question Terry’s credentials.”