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Jackpot for Mike Ashley as Sports Direct votes to pay out

Newcastle United owner Mike Ashley was celebrating last night after Sports Direct shareholders agreed to a multi-million-pound bonus pay-out.

Mr Ashley, the majority shareholder in Sports Direct, successfully pushed through a deal at the fourth attempt during the firm’s annual general meeting on Wednesday, which could see him and an undisclosed number of other staff share a £200m cash pot.

More than 60% of shareholders agreed to the bonus scheme for 2015, which is based on the company hitting sales targets.

It was the board’s fourth attempt to pass a bonus scheme in last three years.

Mr Ashley, who has never drawn a salary from his successful sporting business he founded, was also denied an attempt to cash in on £70m-worth of shares in April after investors had raised concerns.

The news comes after the Institute of Directors expressed significant concerns about Mr Ashley’s power over Sports Direct.

He holds a 58% stake in the firm and also serves as Deputy Executive Chairman, but the IoD suggested there’s a weak underlying governance at the company.

“This type of pay package would be unthinkable for a senior executive who was not also the company’s major shareholder,” said Dr Roger Barker, the IoD’s Director of Corporate Governance.

“It raises doubts about whether the board is acting as an effective independent check on Ashley’s power.

“The IoD believes that, in a public company involving other people’s money, an independently minded board is essential in order to balance the interests of controlling shareholders, minority shareholders and other stakeholders.”

This was posted in Bdaily's Members' News section by Martin Walker .