Sports Direct Shareholders Vote Against Bonus For Chair Mike Ashley
Shareholders in Sports Direct International have voted against a proposal to award Chair Mike Ashley, also the Newcastle United FC Owner, a one-off bonus of 8 million shares in spite of a 25% jump in first-quarter sales, according to Wembridge & Thompson of the FINANCIAL TIMES. Ashley "does not receive any remuneration" from Sports Direct in his role as Exec Deputy Chair but had been "in line to receive the bonus" -- worth £25M ($40M) at Wednesday’s share price -- if the retailer "achieved a challenging series of earnings targets over the next three years." Investors and analysts said that the size of the payout was small, "relative to targets for earnings before interest, tax depreciation and amortisation that rise from £270M ($430M) in '13 up to £340M ($541M) in '15." The news came as Sports Direct reported a 25.3% increase in sales to £519M ($826M) during the 13 weeks to Sept. 4. Sports Direct said that the uptick in sales was helped by the U.K.’s “summer of sport” -- comprising the Olympic and Paralympic Games and Euro 2012 (FINANCIAL TIMES, 9/5).