City applauds bigger bonusat Sports Direct
Thursday 26 April 2012
For once the City cheered a huge rise in a "fat cat" bonus yesterday as Mike Ashley, the founder of Sports Direct, was awarded an extra two million free shares in the retailer for beating earnings targets.
In February, Sports Direct said Mr Ashley would get six million shares, then worth £16.7m, for hitting its "Super-Stretch Scheme" targets in the year which ends this month.
Yesterday it raised that award to eight million shares worth £23.4m, but added more exacting targets for the coming three years.
The City took that as good news, with one analyst saying it "signals a high level of confidence" that with the Olympics and the European Championship this year and the Brazilian World Cup in 2014, Sports Direct can continue strong growth.
This is a vast contrast to when Sports Direct floated five years ago at 300p a share and Mr Ashley trousered £929m selling shares. Within five months the company had issued a profits warning and the share price had plummeted to less than 150p.
Shareholders – but not Mr Ashley, who holds 71 per cent – will be asked to approve the scheme.
Sales for the past nine weeks rose 13.2 per cent and gross profits increased by 13.5 per cent to £99.8m.
- 1 Tourist films plane's descent just metres above packed Caribbean beach
- 2 Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
- 3 World Book Day: Boy 'excluded' from school after dressing up as Fifty Shades' Christian Grey
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 GamerGate: developer Tim Schafer provokes rage with joke about online gaming activists at industry awards
Tourist films plane's descent just metres above packed Caribbean beach
Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
Isis 'bulldozes' Nimrud: UNESCO condemns destruction of ancient Assyrian site as a 'war crime'
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Westboro Baptist Church couldn't picket Leonard Nimoy's funeral because they didn't know where it was
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Durham Free School: 'Creationism taught at' free school facing closure
End of the licence fee: BBC to back radical overhaul of how it is funded
Elif Shafak: Turkish author warns against rise of British nationalism
Ex-head of MI6: 'We shouldn't kid ourselves that Russia is on a path to democracy'
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
iJobs Money & Business
£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£12 - £15 Hourly Rate: Jemma Gent: In this role you will report to the Head of...
£8 per hour: Recruitment Genius: This Pension Specialist was established early...