Mike Ashley survives Sports Direct AGM showdown as shareholders approve re-election
Sports Direct owner Mike Ashley has survived a potential shareholder backlash in the retailer’s annual general meeting (AGM) today.
Roughly ten per cent of investors voted against the re-election of billionaire Ashley, who reportedly did attend the AGM after previously saying he was too busy to take part.
However, Sports Direct chairman Keith Hellawell resigned hours before shareholders voted at the AGM, revealing he would step down after nearly a decade in the role.
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Last week three advisory groups had urged shareholders not to re-elect both Ashley and Hellawell over claims around Sport Direct’s alleged poor treatment of employees, and alleged poor governance.
Billionaire magnate Ashley, who owns a 61 per cent stake in the company, has come under increasing fire for employment conditions at Sports Direct, which were branded as akin to those of a “Victorian workhouse” in a scathing MPs’ report in 2016.
Simon Bentley also retired from his senior non-executive director role, with William Hill's Nicola Frampton to join the board as non-executive director next month.
Sports Direct's share price climbed more than three per cent in the wake of today's AGM.
Read more: Mike Ashley will be absent from this year's Sports Direct AGM
Ashley Hamilton Claxton, head of responsible investment at Royal London Asset Management, said: “We have been advocating for changes to the board for many years, so we welcome the announcement that the chairman and senior independent director are stepping down, to be replaced by two new independent directors. We hope that putting in place strong governance controls will be the new board’s top priority."
Ashley, who owns nearly 30 per cent of Debenhams, snapped up House of Fraser last month, announcing that he wanted to turn the embattled retailer into the “Harrods of the High Street”.
Outgoing director Bentley said during the AGM that the board had considered merging the two struggling high street titans, but later rowed back on the comments.