Shareholders at Sports Direct have voted against a proposed £11m payout to founder Mike Ashley’s brother, John Ashley.
Ashley proposed the back-payment after the board instructed legal advisers RPC to conduct a review of what payment John Ashley, head of IT, had received by the business since it floated in 2007.
The report had concluded that if he had been treated equally with other senior executives who helped build the business, he would have gained additional remuneration payments totalling £11m, which he was denied because of concerns at the time about public relations.
However, 70.7% of the company’s independent shareholders voted against the payment, versus 29.3%. They voted on the payout at the company’s General Meeting earlier today (13 December).
Sports Direct said: ”By voluntarily abstaining from voting on this issue, the board has provided the company’s independent shareholders the opportunity to determine whether or not to make a retrospective payment to John Ashley.
”The board respects the views of the company’s independent shareholders, and considers all these matters to be closed. We now intend to move on.”