Member Article

Mike Ashley in the running for options over eight million Sports Direct shares

Newcastle United owner Mike Ashley stands to gain options over 1.3% of the share capital of Sports Direct, if shareholders approve an executive bonus share scheme.

The proposals are based on the board’s belief that Mr Ashley is central to the increase in the company’s market capitalisation from £2 billion to £5 billion.

The scheme would be implemented on the condition the company achieves EBITDA for its 2014 financial year of £330 million, and EBITDA for its 2015 financial year of £410 million.

Keith Hellawell, Sports Direct’s Chairman said: “Sports Direct’s Employee Bonus Share Scheme is one of the most wide-reaching and favourable employee reward schemes in the UK. Following the success of the 2009 scheme, the 2011 scheme is on track to reward over 3,000 employees having already surpassed two of the four EBITDA targets.

“Other senior executives also benefit from the Executive Bonus Share Scheme but this does not include Mike Ashley, our Executive Deputy Chairman. He receives no remuneration for his substantial contribution to the success of the Company, including the £3 billion of shareholder value that has been created since a scheme was originally discussed with shareholders.

“The Company has already received support from its largest institutional shareholder, Odey Asset Management, who has confirmed that it intends to vote in favour of the resolution. The Board believes that Mike is one of the outstanding retailers of his generation and that all shareholders benefit from his on-going commitment to Sports Direct.”

This was posted in Bdaily's Members' News section by Tom Keighley .