SYDNEY: David Jones has utilised the company's annual general meeting to speak out about the $850,000 settlement agreement reached with former employee, Kristy Fraser-Kirk.
David Jones chairman Robert Savage raised the subject of the now-settled lawsuit citing “queries from shareholders regarding these matters”.
Fraser-Kirk initiated court proceedings against David Jones, its directors and its former CEO Mark McInnes in August following the latter's admissions of behaviour 'unbecoming of a CEO' towards her. McInnes was “mutually terminated” from David Jones in June 2010 as a result of the matter.
Of the $850,000 settlement that was reached with Fraser-Kirk in October, Savage said “it was the right thing to do”.
“First and foremost, we want to reassure you that it was a straight risk/return decision,” Savage began.
“Secondly, notwithstanding our view on the merits of our position, the settlement provided the company with certainty of outcome without the burden of a final hearing.
“Thirdly, it goes without saying that had we continued with the litigation we would have been faced with heavy ongoing legal fees, commitment of many of our key executives to working on the case and potentially appearing as witnesses, all of which would have caused significant distraction from the important task of running the business”.
Current David Jones CEO Paul Zahra, who took over from McInnes, said the company was looking to increase its focus on staff.
“Our current employee engagement measures indicate that there is potential for us to improve,” Zahra said.
He revealed David Jones has began increasing focus on reducing staff turnover, changing performance measures and staff incentives, developing leadership capability and improving support for staff.
Profit results are Zahra's primary concern, however.
“My first priority will be to grow returns to shareholders in a sustainable manner by ensuring that under my stewardship, David Jones brings the best branded department store shopping experience to everyone we serve, every time.”