Former JD Sports’ boss Peter Cowgill is set to receive £5.5m after making his departure from the sportswear retailer.
After decades at the helm of the London-listed firm, Cowgill stepped down following several brushes with the competition watchdog.
Now, JD Sports has said it has agreed exit terms with Cowgill, including a £3.5m payment over two years for agreeing to certain limits and £2m over three years for a consultancy agreement.
Cowgill has also been paid his salary, benefits and will be eligible for any annual bonus, up until 25 May.
A “binding set of new and enhanced restrictive covenants for a two-year period,” have been agreed, preventing Cowgill from working for or advising rivals or soliciting any of JD Sports’ employees.
Bosses also secured a consultancy agreement for an expected period of three years, with Cowgill set to receive £2m for.
This will help new chair and CEO Andy Higginson and Régis Schultz transition into their new roles.
Moving forward, the retailer has split up the roles of chair and CEO, as wlel as recruiting “a new CEO who brings a strong international and digital track record,” plus “locking in the knowledge and experience” of Cowgill, chair Higginson said.
“JD is well positioned for a period of continued commercial outperformance underpinned by strong corporate governance,” he added.