JD Sports to launch pay review after shareholder revolt
today Jul 4, 2019
JD Sports will carry out an investigation into its corporate governance after several shareholders rejected the company’s remuneration report at the annual general meeting held on Wednesday in Bury.
The remuneration report was approved by a majority 69.4% of votes, but 30.5% of the votes cast opposed it.
The retail group, whose brands include JD Sports, Size? and Blacks, said that in light of the discontent and its recent entry into the FTSE 100, it was “an appropriate time” to carry out a review of its practices from a corporate governance perspective.
The company will talk to shareholders as part of this review and will focus, among other things, on remuneration issues, it announced.
Investors speaking for 17.7% of the votes also showed their frustration by opposing the re-election of Andrew Leslie, who is chair of the remuneration committee, while 9% of the votes rejected the re-appointment of Martin Davies, who also sits in the remuneration committee.
And Peter Cowgill was confirmed as executive chairman, although his re-election was opposed by a margin of 10.9%.
Speaking about the company’s performance in recent months, he revealed that in the year to date the firm has seen “encouraging” like for like sales growth in its core Sports Fashion fascias.
“The board remains confident that the Group continues to be on track to deliver headline profit before tax for the full year at least equal to current consensus market expectations,” he said.