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John Cheston, the former managing director of stationery and accessories retail network Smiggle, has been stripped of more than $3.8 million in Premier Investments (ASX: PMV) shares by the company’s board.
Premier Investments, which sacked Cheston on 9 September citing “serious misconduct and a serious breach of his employment terms”, has today announced that it has resolved to forfeit performance shares issued to the former key company executive.
Cheston, who after his sacking had denied any wrongdoing, was entitled to receive 113,550 performance shares which on today’s market would be worth just over $3.8 million.
Premier says the performance shares were issued to Cheston in two equal tranches “pursuant to exercises by him on 18 October 2023 and on 29 May 2024”.
“The Premier board considers that on these dates Mr Cheston was in breach of obligations to the Premier Group,” says the company.
“Mr Cheston's employment was terminated on 9 September 2024 because the Just Group board considered he had engaged in serious misconduct and a serious breach of the terms of his employment.
“The Premier board considers that it is contrary to the purpose and conditions of the plan and otherwise inappropriate for Mr Cheston to receive the benefit of the performance shares that were issued on the aforementioned exercise dates.”
Premier Investments notes that its performance rights plan is a long-term incentive scheme offered to eligible employees of companies in the Premier Group subject to performance conditions being met and at the discretion of the company’s board.
Smiggle is part of the JUST Group that also owns the Peter Alexander, Just Jeans and Jacqui E brands, and is ultimately owned by Solomon Lew's Premier Investments (ASX: PMV).
Cheston’s sacking came just three months after it was announce that he was jumping ship to join Brett Blundy’s global jewellery chain Lovisa Holdings (ASX: LOV) to become its new CEO.
Prior to that, Cheston had spent 12 years with Smiggle, joining as general manager in 2022.
Smiggle, along with designer sleepwear brand Peter Alexander, has been among the strongest performers in the Premier Investments stable.
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