DEPARTMENT store chain David Jones's chief executive Mark McInnes has resigned after a female staff member made allegations about inappropriate behaviour towards her.
The termination of Mr McInnes's contract as CEO and board member would be effective immediately, Sydney-based David Jones said in a statement.
Mr McInnes admitted to behaving "in a manner unbecoming of a chief executive to a female staff member'' at two recent company functions.
Under the circumstances, the board and Mr McInnes agreed that it was in the best interest of shareholders and the company for his employment to be mutually terminated, the company statement said.
Mr McInnes's settlement payment will be less than his contractual entitlement after working for 13 years at David Jones.
Mr McInnes would not be entitled to any of his contractual rights relating to short term incentives or to any currently operating long term incentive or retention, David Jones said.
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He will receive his statutory entitlements of $445,421 and a settlement payment of $1.5 million.
Mr McInnes said in a separate statement that he would be overseas together with his partner for the foreseeable future.
"I have committed serious errors of judgment and have inexcusably let down the female staff member,'' Mr McInnes said in his statement.
"I have also let down my partner, my family, all my staff, the board and our shareholders.
"I apologise to everyone I have let down.''
He said he hoped his immediate resignation would minimise the impact of his conduct at David Jones, which he led for seven years.
Mr McInnes said in a separate statement that he would be overseas together with his partner for the foreseeable future.
"I have committed serious errors of judgment and have inexcusably let down the female staff member,'' Mr McInnes said in his statement.
"I have also let down my partner, my family, all my staff, the board and our shareholders.
"I apologise to everyone I have let down.''
He said he hoped his immediate resignation would minimise the impact of his conduct at David Jones, which he led for seven years.
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