David Jones faces pay backlash

Perpetual to oppose remuneration plan over Zahra departure.

Retailer David Jones (DJS) will face stiff opposition to its remuneration report at this week's annual meeting, with shareholder Perpetual declaring that it will oppose the report, according to The Australian Financial Review.

The opposition comes as Perpetual, which owns nearly 5 per cent of David Jones, expresses concerns about the retailer's direction following the announcement that chief executive Paul Zahra will depart the company once a suitable replacement is found.

“Given recent events we will be voting against the remuneration package,” Perpetual portfolio manager Vince Pezzullo said, according to the AFR.

“We have full faith in Paul Zahra, we think he has been doing a good job.

“We are concerned about the company being left exposed now as they look for a new CEO and concerned that it could lose other senior staff in the lead up to the crucial Christmas period.

“We feel they should have waited until they had firmed up a succession plan before announcing it to the market.”

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles