However, the Myer board has softened the blow for chief executive Bernie Brookes and finance director Mark Ashby, increasing their cash salaries by 11.1 per cent and 7.1 per cent respectively.

The board is also seeking shareholder approval to grant another $600,000 in performance rights to Mr Brookes in 2015 as part of his long term incentive and to pay termination benefits in the event of his departure.

Mr Brookes was due to step down in August after eight years at the helm. However, in February, in the midst of Myer's failed 'merger-of-equals' proposal for David Jones, the board renewed Mr Brookes contract.

Under the open contract, Mr Brookes's fixed remuneration was increased by 11.1 per cent to $2 million, the first increase since September 2011.

Mr Brookes is also eligible to receive as much as $3.6 million in short term and long term incentives, taking his total remuneration to $5.6 million, if performance hurdles are achieved.

Mr Brookes will no longer be entitled to a payment of $1.8 million if he ceases employment at Myer. However, subject to shareholder approval at the annual meeting in November, Mr Brookes will be entitled to retain some of his performance rights and may also be entitled to a pro-rated cash award.

According to Myer's annual report, Mr Brookes received total remuneration of $2.57 million in 2014, up from $2.54 million in 2013, while Mr Ashby's total package rose from $750,364 to $916,577.

Three senior executives - Adam Stapleton, Greg Travers and Mark Goddard - left during the year and were replaced by three new executives, strengthening the bench.

Myer's profits have fallen each year for the last four years, from $169 million in 2010 to $98.5 million in 2014, as growth in costs outpaced sales growth.

However, chairman Paul McClintock has flagged better times ahead for 2015, when Myer expects to start realising the benefits of recent investments in new bricks and mortar stores, refurbishments, e-commerce, customer service and loyalty.

"We anticipate our performance will be assisted by a number of factors including the benefits of completed store refurbishments and openings; growth of the online business supported by an enhanced customer experience; new partnerships with Australian designer brands; continued growth in Myer Exclusive Brands, sass & bide, and other new national and international brands; as well as a new Christmas merchandise and marketing strategy," Mr McClintock said in the annual report.

"We will continue to invest in the business in 2015 with a focus on accelerating our omni-channel strategy, investing in our people, optimising the Myer Exclusive Brands strategy, customer service innovation, and refreshing the Myer brand," he said.

"These investments are important to deliver the operational improvements and capabilities required to underpin long-term, sustainable growth."

Myer shares are currently trading around $1.80, their lowest level for two years, compared with $2.50 when Myer first approached David Jones with a merger proposal last October.

Investors have wound back expectations for a rebound in profits this year and analysts are forecasting a 2 per cent fall in net profit to $96.5 million, according to consensus estimates.

In 2014, Myer introduced a new "business transformation" metric for executive remuneration, which relates to the successful delivery of the company's strategic plan. The business transformation hurdle accounts for 25 per cent of the performance rights granted to senior executives under long term incentive plans.