Sports Direct boss Mike Ashley eyes £67m mega bonus

Vote to give Ashley a similar reward in 2012 was pulled due to lack of shareholder support

Billionaire Mike Ashley is hoping for the third year in a row to convince Sports Direct shareholders that he deserves a huge bonus which would net the businessman an extra £67 million

The retailer has called an emergency meeting for April 4 at the company’s remote Derbyshire headquarters to approve a pay packet for the founder, who has yet to receive a salary for his role as executive deputy chairman.

The board is proposing Ashley, who pocketed a cool £1 billion when he floated the business in 2007, should be given eight million shares worth nearly £67 million at today’s share price, if certain targets are hit between now and July 2018.

A vote to give Ashley a similar reward in 2012 was pulled from the company’s annual general meeting when it was clear the board would not get the required votes from shareholders.  Last year’s meeting also had no vote on the topic despite bosses previously saying they were keen to pursue a resolution after September 2012’s failure.

Ashley will not use the voting rights his own 62 per cent stake brings him, relying on other shareholders to approve the deal which must see profits hit £330 million this year and £410 million next. Debt levels must also remain stable.

Keith Hellawell, Sports Direct’s chairman, said: “Mike Ashley, our executive deputy chairman… receives no remuneration for his substantial contribution to the success of the company, including the £3 billion of shareholder value that has been created since a scheme was originally discussed with shareholders.

“The company has already received support from its largest institutional shareholder, Odey Asset Management, who has confirmed that it intends to vote in favour of the resolution.

“The Board believes Mike is one of the outstanding retailers of his generation and all shareholders benefit from his on-going commitment.”

Sports Direct already has a bonus scheme for its full-time employees — around 10% of the total workforce — but uses zero-hour contracts for the remaining staff. Although that bonus scheme has been approved, the Ashley payouts have failed to materialise.

At the height of the so-called shareholder spring, the Association of British Insurers issued a red-top alert over the bonus proposals because of concerns they did not include other Sports Direct executives and only included one measure of performance.

Ashley, who according to Forbes is  worth $5.5 billion (£3.3 billion), declined to comment today.

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Adviser - OTE £24,500

£22500 - £24500 per annum: Recruitment Genius: Inbound and outbound calls with...

Recruitment Genius: Business Development Executive / Sales - OTE £40,000

£18000 - £40000 per annum: Recruitment Genius: This fast growing Insurance Bro...

Guru Careers: Research Associate / Asset Management Research Analyst

£40 - 45k (DOE) + Benefits: Guru Careers: A Research Associate / Research Anal...

Ashdown Group: Chief Technology Officer (CTO) - Glasgow

£90000 - £98000 per annum + benefits : Ashdown Group: A truly exciting opportu...

Day In a Page

Solved after 200 years: the mysterious deaths of 3,000 soldiers from Napoleon's army

Solved after 200 years

The mysterious deaths of 3,000 soldiers from Napoleon's army
Every regional power has betrayed the Kurds so Turkish bombing is no surprise

Robert Fisk on the Turkey conflict

Every regional power has betrayed the Kurds so Turkish bombing is no surprise
Investigation into wreck of unidentified submarine found off the coast of Sweden

Sunken sub

Investigation underway into wreck of an unidentified submarine found off the coast of Sweden
Instagram and Facebook have 'totally changed' the way people buy clothes

Age of the selfie

Instagram and Facebook have 'totally changed' the way people buy clothes
Not so square: How BBC's Bloomsbury saga is sexing up the period drama

Not so square

How Virginia Woolf saga is sexing up the BBC period drama
Rio Olympics 2016: The seven teenagers still carrying a torch for our Games hopes

Still carrying the torch

The seven teenagers given our Olympic hopes
The West likes to think that 'civilisation' will defeat Isis, but history suggests otherwise

The West likes to think that 'civilisation' will defeat Isis...

...but history suggests otherwise
The bald truth: How one author's thinning hair made him a Wayne Rooney sympathiser

The bald truth

How thinning hair made me a Wayne Rooney sympathiser
Froome wins second Tour de France after triumphant ride into Paris with Team Sky

Tour de France 2015

Froome rides into Paris to win historic second Tour
Fifteen years ago, Concorde crashed, and a dream died. Today, the desire to travel faster than the speed of sound is growing once again

A new beginning for supersonic flight?

Concorde's successors are in the works 15 years on from the Paris crash
I would never quit Labour, says Liz Kendall

I would never quit party, says Liz Kendall

Latest on the Labour leadership contest
Froome seals second Tour de France victory

Never mind Pinot, it’s bubbly for Froome

Second Tour de France victory all but sealed
Oh really? How the 'lowest form of wit' makes people brighter and more creative

The uses of sarcasm

'Lowest form of wit' actually makes people brighter and more creative
A magazine editor with no vanity, and lots of flair

No vanity, but lots of flair

A tribute to the magazine editor Ingrid Sischy
Foraging: How the British rediscovered their taste for chasing after wild food

In praise of foraging

How the British rediscovered their taste for wild food