Department Store chain David Jones Ltd
(ASX:DJS) CEO Mark McInnes has resigned as head of the company after admitting to inappropriate behaviour towards a female staff member on two occasions.
David Jones says Mr McInnes’ resignation as CEO and a member of the board is effective immediately.
Paul Zahra, who has held senior management roles for the past 12 years with David Jones, has been appointed as CEO and will also join the board of directors of David Jones.
In a statement this morning, Mr McInnes says at two recent company functions, he behaved in a manner unbecoming of the high standard expected of a chief executive officer to a female staff member.
Under the circumstances both Mr McInnes and David Jones have agreed that it is in the best interests of shareholders and the company for his employment to be mutually terminated.
Mr McInnes will receive less than his contractual entitlements after 13 years working with the company and will not be entitled to any of his contractual rights relating to short term incentives or to any current long term incentives.
Mr McInnes will receive statutory entitlements of $445,421 and a settlement payment of $1.5 million.
David Jones posted net profit after tax of $156.52 million for the 12 months to July 30, 2009.
