Retailer Sports Direct accuses Pirc lobby group of ‘fake news’

Mike Ashley’s Sports Direct has lashed out at an influential shareholder lobby group, accusing it of “fake news” for claims over its executive pay ratios.

The retailer said a report by Pensions & Investment Research Consultants (Pirc) “incorrectly claims that Sports Direct had a chief executiveto-average employee pay ratio of 400:1, the second highest in the FTSE 350”.

The data sets used in the study were “incorrect”, according to the retailer, and based on a bonus entitlement which was accrued by former chief executive Dave Forsey, but was never paid out.

A Sports Direct spokesman said yesterday: “This is fake news that appears to have been either deliberately or recklessly circulated by an irresponsible organisation that is making headlines at the expense of Sports Direct.

“We have contacted Pirc to request a copy of the report and we will be writing to them to express our disappointment. It is incorrect to state that Sports Direct has the second-highest ratio of chief executive-to-average employee pay.”

Sports Direct added that the true ratio over 2012 to 2015, had it paid out, would have been “closer to 9:1”.

Last week, Ashley – who also owns Newcastle United FC – said Sports Direct will appoint an employees’ representative who will attend board meetings following the uproar over working conditions. 0 Mike Ashley has made his fortune building Sports Direct