Myer has extended Bernie Brookes’ contract as chief executive officer and managing director of the company for a further two years.

Brookes’ contract term has been extended to August 2014.

Chairman Howard McDonald said the board is confident that Brookes will be able to continue delivering on the company’s strategy.

“While Bernie’s previous contract was due to expire in August 2012, the Board is pleased to have agreed a new contract to provide stability and continuity of management. Bernie has also indicated his desire to see through the commitment he made to the Board to realise our plans for the business,” he said.

“The economic environment is likely to continue to be challenging in the short-term, demanding the attention of a highly experienced retailer as Chief Executive, supported by a strong management team. We are certainly of the view that Bernie and his team meet those criteria."

As part of the contract, Brookes will receive $1.8 million in fixed remuneration. He will also be eligible to receive performance rights of up to $2.7 million in value for shareholder return and earnings per share as targets are met.