Partner Article

Sports Direct cancel Mike Ashley’s £73 million bonus scheme

Newcastle United owner Mike Ashley looks unlikely to receive a proposed £73 million bonus package as Sports Direct shareholders have blocked the move.

The firm had been due to agree the deal this Friday, but a note to investors showed they had not satisfied enough of the shareholders to go ahead.

Dave Singleton, non-executive director and chairman of the remuneration committee, said: “During our on-going discussions with institutional shareholders, it became apparent that, while we had the support of some of our largest shareholders, we had not been able to secure the requisite level of shareholder approval.

“While the Board is disappointed that this resolution will not now be passed, we respect shareholders’ views. We remain convinced of the benefit of aligning Mike Ashley’s interests with those of all other shareholders.

“The final outcome is particularly disappointing given that a clear majority (over 60%) voted in favour of the original scheme proposed in September 2012 and we narrowly missed the required support for the Supplemental Executive Bonus Share Scheme.”

The sports retailer now plans to seek shareholder approval for another bonus scheme for implementation in 2015.

It would make 25 million ordinary shares available to participants if the firm met certain performance criteria.

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