Member Article

Sports Direct board in renewed push for Mike Ashley bonus scheme

The board of high street sports retailer Sports Direct will renew their efforts to gain shareholder approval for an share bonus that would benefit executive deputy chairman, Mike Ashley.

In a note to shareholders the company said it would reintroduce the bonus scheme proposals with more stretching performance targets, after the 2014 bonus scheme was blocked.

EBITDA targets include: FY2016 of £480 million; FY2017 of £570 million; FY2018 of £650 million; and FY2019 of £750 million.

If such targets are met, scheme would grant options over up to 25 million ordinary shares in the company.

Keith Hellawell, Sports Direct’s chairman said: “Sports Direct’s Employee Bonus Share Scheme is one of the most wide-reaching and successful employee reward schemes in the UK.

“The success of the scheme is demonstrated by the shareholder value created, with the share price reaching an all-time high in April this year and currently six times higher than when shareholders approved the 2009 Employee Bonus Share Scheme.

“The Board and the Remuneration Committee have responded to the feedback received from shareholders to develop a long-term share incentive scheme which not only will continue to motivate the Company’s employees but which also recognises and rewards the substantial contribution made by Mike Ashley over many years.

“Based on the stretching performance targets established, this scheme has the potential to create a further substantial increase in shareholder value.”

Sports Direct said executive directors, include Mike Ashley, would not vote on the resolution.

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