Sports Direct goes to battle with shareholders for rejecting Mike Ashley bonus scheme
The hostilities between Mike Ashley and the City deepened last night after the Sports Direct retail chain he founded launched a stinging attack on its own investors.
In a strongly worded statement, contained in an upbeat trading update, the firm attacked shareholders for refusing to support the latest bonus scheme for Ashley.
‘The board was extremely disappointed to withdraw the resolution regarding a proposed share scheme award to Mike Ashley,’ it said.
Revolt: Sports Direct sought to push through a bonus scheme that would have seen the billionaire make a further £65million
‘The most disappointing aspect was where large shareholders gave their support only to vote differently. This outcome is likely to lead to further uncertainty in the future.’
Ashley founded the firm – which also owns Dunlop, Slazenger, Kangol and Lonsdale – in 1982, and has helped to drive up the shares 88 per cent during the past 12 months.
He was hoping this would be third time lucky as Sports Direct sought to push through a bonus scheme that would have seen the billionaire make a further £65million.
But all attempts have failed because shareholders felt that the targets were not stretching enough.
Ashley, who owns 62 per cent of the business, was not allowed to vote and needed the support of the institutions which own the remaining 38 per cent stake.
Earlier this month the sportswear group cancelled the vote after realising that it did not have enough support from key investors.
Ashley has had a fractious relationship with the City after shares in Sports Direct halved in value six months after floating, and he scorned investors saying: ‘Some of these City people act like a bunch of cry babies...Sports Direct should come with a government health warning – this stock is not for the faint-hearted.’
But yesterday it was Ashley and Sports Direct on the back foot, despite group sales rising 10.3 per cent to £360million for the nine weeks ending March 30 as gross profit increased 11.5 per cent to £147million.
The shares fell 33p to 797p.
Most watched Money videos
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- Mail Online takes a tour of Gatwick's modern EV charging station
- How to invest for income and growth: SAINTS' James Dow
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- How to invest to beat tax raids and make more of your money
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Iconic Dodge Charger goes electric as company unveils its Daytona
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Spirit of Nicole and Papa lives on in frugal new Renault...
- Competition watchdog sounds alarm over Pennon's takeover...
- Apple adds more than £145bn to its value after unveiling...
- SHARE OF THE WEEK: BP shareholders looking for answers...
- Glencore plotting a takeover offer for Anglo American...
- Shares in owner of make-up company Charlotte Tilbury lose...
- MARKET REPORT: Growth across Italy and Spain help...
- Spruce up your portfolio: Three Great British brands that...
- INVESTING EXPLAINED: What you need to know about primary...
- Homeowners dealt fresh blow as experts warn mortgage...
- HSBC's chairman jeered by furious former staff who say...
- What Rachel Reeves is not telling us should alarm voters,...
- Could the Bank of England leapfrog the Fed and cut...
- Debt-laden Asda strikes huge £3.2bn refinancing deal
- Trainline shares steam ahead as it doubles profits amid...
- Is the Ferrari 12Cilindri the last of its V12s? It...
- Diageo appoints Nik Jhangiani as next finance boss
- BUSINESS LIVE: IHG's first-quarter revenues rise; Diageo...