Sport Direct plans new vote on Mike Ashley bonus

Sports Direct shareholder are to vote again on a bonus for founder Mike Ashley, months after a shareholder rebellion forced the retailer to scrap plans for a payment of more than £70m.

Britain's biggest sports goods retailer on Monday set out plans for a vote on the 2015 company bonus scheme to grant options over 25m shares - worth more than £205m at the current price - to staff and executives, including Mr Ashely, the executive deputy chairman.

In April, Sports Direct cancelled an annual meeting after failing to secure enough support from shareholders to award Mr Ashley shares in Sports Direct. It was the second time in less than two years that Sports Direct had dropped plans to create a bonus scheme for Mr Ashley, who also owns Newcastle United, after investors rejected the proposals.

As he is eligible for the long-term scheme, 62pc shareholder Mr Ashely will not vote on the resolution.

The bonus scheme, which amounts to around 4pc of the share in Sport Direct, will only vest if the company achieves EBITDA of £480m in 2006, £650m in 2017, £650m in 2018 and £750m in 2019. If targets are met, 25pc of any award would vest after in July 2019 and the rest in 2021.

Keith Hellawell, Sports Direct's Chairman, said the company had responded to the feedback received from shareholders to develop a long-term share incentive scheme which motivates staff and "recognises and rewards the substantial contribution made by Mike Ashley over many years".

The annual meeting will be held on July 2.

Sports Direct shares, which rose 0.8pc to 819.5p on Monday, have risen more than 300pc since August 2007, as it expanded during the Great Recession. It has more than 400 stores in the UK.

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