Sports Direct £200m Bonus Deal Gets EGM OK
Sports Direct shareholders have agreed to implement a deal that could see founder Mike Ashley and other staff offered a bonus pot worth up to £200m.
More than 60% of shareholders at the sporting apparel firm's extraordinary general meeting (EGM) agreed to implement the bonus scheme for 2015.
The company had announced the proposed resolution on June 9, seeking approval for the bonuses, if profit targets are met, for Mr Ashley and other staff.
Mr Ashley, who also owns Newcastle United and is the majority shareholder in Sports Direct, has not drawn a salary from his successful sporting business.
The bonus plan is the fourth attempt the company has made to reward Mr Ashley.
In addition to not taking a salary, Mr Ashley has not received a bonus from the retailer.
The most recent attempt to reward Mr Ashley suffered a shareholder rejection as the bonus plan did not include certain other key executives.
The Institute of Directors (IoD) raised concerns about the bonus proposal, on Tuesday, citing corporate governance concerns.
It said in a statement: "Sports Direct is seeking to push through excessively generous pay arrangements for Mr Ashley.
"The IoD is concerned that it is suggestive of weak underlying governance at the company."
The Local Pensions Fund Forum and Association of British Insurers previously asked investors to oppose the plan.
Mr Ashley established Sports Direct in 1982, and the company has grown quickly amid struggles by high street rivals.
It also owns a number of brands which are sold through its outlets.
Department store Debenhams recently announced Sports Direct concessions would be trialled in a number of its outlets.