Sports Direct’s pay policy and Mike Ashley’s dominance slammed by key investor
Beleaguered retailer Sports Direct has been slammed by a top investor over its remuneration policy and founder Mike Ashley's dominance.
Standard Life Investments has called for big changes at the retailer in its annual governance report. The asset manager is the fourth largest shareholder in Sports Direct with a 3.5 per cent stake. As at December 2016, it held 33.6m shares.
“We have been concerned for some time about governance arrangements at Sports Direct,” the investment company said in its annual governance report. “The board lacks independence and the non-executive directors lack the appropriate skills and experience to enable robust challenge of the executive team, particularly the founder and major shareholder Mike Ashley.
“We also have major concerns regarding its remuneration policy. We have engaged with senior executives and non-executives over many years on these issues, but to little effect. We will monitor future developments and expect to engage further over the coming year.”
Read more: Sports Direct splits from top brokers
Ashley was grilled by MPs last year over working practices in its warehouses.
A report by the Business, Innovation and Skills Select Committee last July hit out at the retailer for its "extremely disturbing" working conditions at the company, likening its Shirebrook warehouse to "a Victorian workhouse".
Standard Life Investments also expressed concern over Volkswagen saying "increased board independence is crucial to rebuilding trust" in the company.
The carmaker, which was embroiled in the dieselgate scandal, today agreed to pay at least $1.22bn (£950m) to fix or buy back nearly 80,000 US diesel-engine vehicles to settle claims it fitted illegal emissions-cheating software to the cars.