Sports Direct has refuted claims by the Pensions & Investment Research Consultants (PIRC) that it has a chief executive to average employee pay ratio of 400:1, calling the organisation “reckless and irresponsible.”
The report by PIRC placed Sports Direct as the second highest firm in the FTSE 350.
Sports Direct said the “fake news” was incorrect and the retailer would write to the organisation to express its disappointment.
The retailer said the data table was based on former Sports Direct CEO Dave Forsey’s bonus entitlement which he choose to forego so the money was never paid out.
The bonus was granted in 2011 and subject to the satisfaction of four underlying EBITDA targets from 2012 until 2015 and was due to vest in 2017.
Sports Direct said the true ratio over the period in question would have been closer to 9:1, according to PIRC’s calculations. The retailer added that current chief executive, Mike Ashley, does not draw a salary, and never has.