Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

JD Sports director ousted in investor rebellion over pay

Stock Markets Jul 01, 2021 01:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: People pass a JD Sports store in London, Britain April 11, 2017. REUTERS/Neil Hall

By James Davey

LONDON (Reuters) -The chair of JD (NASDAQ:JD) Sports Fashion's remuneration committee will leave the board following a shareholder rebellion over management pay at Britain's biggest sportswear retailer.

At the retailer's annual investor meeting (AGM) on Thursday 54.65% of independent votes cast opposed non-executive director Andrew Leslie's reappointment to the board, while 45.35% were in favour.

Leslie had been on JD Sports' board for 11 years, longer than Britain's corporate governance code recommends.

The group said he would step down immediately.

JD Sports has been criticised by shareholder advisory groups for paying longstanding boss Peter Cowgill a bonus in a year the group received taxpayer money for business rates relief and staff furloughed during COVID-19 lockdowns.

Investors have become more vocal in their opposition to boardroom pay deals they deem excessive amid society's broader struggles in the pandemic.

At the JD Sports AGM, 31.5% of votes cast opposed the group's pay report and 20% opposed its pay policy.

Ahead of the meeting the firm had bowed to critics of its corporate governance by saying it would split Cowgill's role as executive chairman and recruit a chief executive over the next year.

It said "a comprehensive process" to divide the role would commence shortly.

"We fully accept that the composition of our board should reflect the current scale, momentum and global positioning of the group as well as its increased level of market capitalisation," it said.

Corporate governance guidelines recommend that the roles of chairman and CEO should be kept separate.

JD Sports, whose stock market value has grown to 9.5 billion pounds ($13.1 billion) as it has expanded across Europe and the United States, also acknowledged a need to create "additional diversity" within its board.

The group said it would consider repaying government support on payroll costs but defer a final decision until there was certainty on both the full easing of pandemic restrictions and the consequences of any further lockdowns during the peak trading period this winter.

The group said it had seen positive trading in the period since stores reopened after lockdowns, particularly in the United States.

It forecast profit before tax and exceptional items for the full 2021-22 year of "no less" than 550 million pounds, up from previous guidance of 475-500 million and 421.3 million pounds made in 2020-21.

Its shares closed up 5.4%.

($1 = 0.7258 pounds)

JD Sports director ousted in investor rebellion over pay
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email