SYDNEY: David Jones CEO Mark McInnes has executed his own downfall, with the executive resigning from the department store in the wake of an ethics breach.
McInnes has admitted to behaving “in a manner unbecoming of the high standard expected of a chief executive officer to a female staff member”.
The incidents occurred at two recent company functions.
“As a result of this conduct I have offered my resignation to the David Jones board and we have agreed on the mutual termination of my employment with the company, effective immediately,” McInnes said in a statement.
David Jones chairman Robert Savage said the circumstances surrounding McInnes' departure were “deeply regrettable”.
“The Board has acted promptly to address a complaint made by the female staff member concerned, the issues arising from it and to appoint a new CEO,” Savage said.
“We have offered all appropriate support to the affected employee whose solicitors have made a complaint to the Board about McInnes' conduct. The Board takes her allegations extremely seriously.
“The Board has taken and will continue to take steps to ensure that this complaint is appropriately addressed,” Savage said.
McInnes had been employed by David Jones for 13 years, acting as CEO for the past seven of those years. He apologised to “everyone I have let down”.
“In resigning immediately it is my hope that I will minimise the impact of my errors of judgement,” McInnes said.
David Jones has announced McInnes' settlement will be less than his contractual entitlement, though he will still walk away with a payout of nearly $2 million. McInnes will receive his statutory entitlements of $445,421 and a settlement payment of $1.5 million.
The David Jones board has appointed Paul Zahra as the new CEO of the company effective immediately. Zahra was formerly Group General Manager Stores and Operations for David Jones and has been with the company since 1998.