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GBP200m Ashley bonus 'suggests lack of checks' [Scotsman, The (Scotland)](Scotsman, The (Scotland) Via Acquire Media NewsEdge) The Institute of Directors (IoD) yesterday waded into the row over Sports Direct founder Mike Ashley's proposed bonus, calling it excessive and saying it was "suggestive of weak underlying governance at the company".Its comments came as shareholder groups mustered opposition to a bonus scheme that is to be put to the vote at a meeting today.The board is expected to seek approval for the potential award of shares worth GBP200 million to Ashley and an undisclosed number of employees. Ashley, who does not claim a wage for his role as deputy executive chairman, owns 58 per cent of the company but will not vote as he is a member of the board.It will be the third attempt in two years by the company to pay a bonus to its founder. Previous proposals have been rejected by shareholders, but this time Ashley's payment will be part of a wider employee scheme that has seen thousands of staff rewarded for hitting sales growth targets.Roger Barker, director of corporate governance at the IoD, said: "The fact that the board of Sports Direct is attempting once again to push through a hugely generous pay award for Mike Ashley suggests weak governance at the company."This type of pay package would be unthinkable for a senior executive who was not also the company's major shareholder. It raises doubts about whether the board is acting as an effective independent check on Ashley's power."Sports Direct did not wish to comment on the IoD's statement. (c) 2014 ProQuest Information and Learning Company; All Rights Reserved. |