Mike Ashley In Line For Over £100m If Latest Scheme Approved
Mike Ashley is trying yet again to push through a bonus scheme at Sports Direct which would see him pocket tens of millions.
The last attempt which was met with resistance by shareholders would have seen Ashley pocket around £70m.
The rationale is that if Ashley is driven to succeed via a bonus system, then all shareholders will net even greater riches.
The new plan would see executives share up to 25m bonus shares, with Ashley holding 57.71% of the company, he could land up to almost 15m of them if his stake in the company was reflected by his share of the bonus.
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With shares currently trading at over £8 then at today’s prices, 15m shares would equate to over £140m. Of course, if SD hits all these proposed targets in the coming years then naturally the shares will be worth far more than the current £8 or so, meaning the actual bonuses could be double or treble if the company continues its upward trajectory.
Ashley of course sold around 4% of his SD shares in April, netting him £204m.
Speaking about the majority shareholder’s position, Sports Direct have said Ashley’s inclusion in this proposed bonus plan is to a backdrop of him receiving, “No renumeration for his substantial contribution to the company since its initial public offering in February 2007”, plus the fact he isn’t part of the 2011 bonus scheme for executives.
SD have announced that the directors, including Ashley, who stand to benefit from the scheme, will not exercise their right to vote.
However, after Mike Ashley reacted angrily with that April share sale which at least temporarily knocked the SD share price, it will be interesting to see if the voting shareholders dare to do the same again, left to wonder what Ashley’s revenge would be this time.
With Sports Direct’s stated policy of spending as little on advertising as possible, as Newcastle fans we are all just grateful that we can help with the free worldwide invaluable free advertising that Mike Ashley supplies to the rest of his empire free of charge.
Something that no doubt he’d like to remind shareholders of when they come to vote…
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