Ms Lynch's resignation was not a surprise. Fellow directors in November said the Sydney-based director might leave the board early this year as she reassessed her workload and as the board reviewed its structure. Ms Lynch, a former Westpac Banking Corp senior executive, is also a director at the troubled wine producer Southcorp, and heads the board at OPSM. She was appointed to the Coles Myer board in 1995 as part of a peace deal to end an earlier boardroom battle, and is in line for retirement benefits of about $340,000. Coles Myer recently decided to phase out directors' retirement benefits, although current directors will receive their full entitlements.