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Sports Direct considers new incentive scheme

Sports Direct’s founder and deputy executive chairman Mike Ashley is eyeing a fresh incentive scheme after investors blocked the bonus incentive that would have paid him a £70m in shares.

The retailer said it would abandon the original arrangement replacing it with a scheme for all employees, senior management, executive directors and Ashley. The new bonus scheme will be voted on at the Sports Direct annual meeting in September and Ashley will not vote, according to the Financial Times.  

The move follows the “extreme disappointment” of the retailer over the shareholders withdrawing support over the bonus scheme for Ashley, saying it could lead to “further uncertainty” for the company.

Sports Direct published a trading update yesterday (April 23) ahead of its year end on April 27, and noted that performance was strong, with group sales up 10.3% to £360m for the nine weeks to March 30, while group profit rose 11.5% to £147m.

At the start of the month, Sports Direct was forced to cancel an investor meeting that had been called to vote on a new bonus scheme that would gift Ashley 8 million shares, worth around £72m.

A week later, Ashley sold £217m worth of shares.

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