News: MYR UPDATE 1-Myer's executive pay voted down but board ouster move a no go

• Absentee shareholder votes go against Myer executive pay
• Myer shareholders vote against sacking board
• Company has struggled against online competition

(Adds chairman comment, context)

SYDNEY, Nov 30 (Reuters) - Shareholders of Australian department store operator Myer Holdings Ltd (MYR) voted against the company's executive pay proposals for a second year in a row on Friday, but stopped short of taking up an opportunity to fire its board.

Under Australian law, companies must give shareholders the option to replace the board if the pay proposals are rejected two years running. A vote against the remuneration report needs just 25 percent to succeed but a majority is needed to convene a meeting to oust the board.

Owners of 37.5 percent of Myer's shares voted against the company's remuneration report but 63.3 percent voted against calling a special meeting to remove the board, according to proxy votes disclosed at the company's annual general meeting.

"We are obviously disappointed by this result," said chairman Garry Hounsell at the meeting.

"We are in no doubt that these results reflect broader issues. We respect the message delivered by shareholders."

Led by 11 percent shareholder Solomon Lew, Myer investors voted against the board's pay last year. Lew has been a vocal critic since becoming the company's biggest shareholder in March 2017, complaining its board has inadequate retail experience.

The 118-year-old company has since continued to struggle, posting its first annual loss since listing in 2009 in September, largely due to an impairment charge on the value of its brands. Even without the writedown, underlying profit more than halved.

Like many department stores worldwide, Myer and smaller rival David Jones, owned by South Africa's Woolworths Holdings Ltd WHLJ.J , have faced an existential crisis as internet giants like Amazon.com Inc AMZN.O undercut their business model by selling more products for less.

A representative of Lew was not immediately available for comment on Friday.