SYDNEY: David Jones has settled the sexual harassment case involving its former CEO Mark McInnes, four months on from its initiation.
The national department store confirmed on October 18 it had reached a $850,000 settlement with former employee, Kristy Fraser-Kirk. The figure comprised a contribution from David Jones and a smaller contribution from McInnes.
Fraser-Kirk lodged proceedings in the Federal Court against McInnes, David Jones and the company's directors back in July 2010. The legal action followed McInnes' “mutual termination” from David Jones, with McInnes conceding “serious errors of judgement” and behaviour “unbecoming of the high standard expected of a chief executive officer to a female staff member".
Upon his “mutual termination” in June 2010, McInnes received statutory entitlements of $445,421 and a settlement payment of $1.5 million.
The role of David Jones CEO is now held by Paul Zahra.