Boss Ashley steers clear of Sports Direct AGM
MIKE ASHLEY’S reputation for breaking corporate convention has shown no sign of stopping as Sports Direct announced that the billionaire chief executive will not be attending the company’s annual shareholder meeting.
Sports Direct said that “due to conflicting demands for his time in other areas of the business” Mr Ashley would not be required to attend this year’s AGM. The sportswear retailer also revealed that it would not be repeating last year’s open day at its Shirebrook headquarters.
The event last year, which was meant to focus on Sports Direct’s rehabilitation from a scandal over the treatment of workers, was thrown off course when Mr Ashley unloaded a wad of £50 notes during a mock security search. This year’s AGM will be hosted by Keith Hellawell, the chairman, despite the former police chief saying that he is prepared to resign if a majority of independent investors vote against his re-election again. Mr Hellawell was spared last year after Mr Ashley used his majority voting rights to keep the long-serving chairman in. One analyst said that the failure to attend the AGM, which is seen as a rare opportunity for independent shareholders to hold the company to account, was “another example of Mr Ashley having limited regard for investors”.
The sportswear tycoon’s grip on the company has tightened as he now owns a 62pc stake due to an ongoing share buy-back scheme.
Since last year’s annual meeting there has been an overhaul of Sports Direct’s boardroom with company lifer Dave Forsey quitting as chief executive, Matt Pearson resigning as acting finance boss, and Claire Jenkins, the sole female non-executive director, stepping down.
The company recently ended its fouryear wait for a permanent finance chief by hiring Jon Kempster, who has held the position at small and mid-cap firms.