JD Sports bows to investor rebellion, vowing to carry out pay review

Peter Cowgill

Bury-based JD Sports Fashion has vowed to bow to shareholder pressure and carry out an investigation into corporate governance following an investor rebellion at its annual general meeting yesterday.

It said all resolutions were passed, but two, regarding directors’ remuneration and the re-election of a remuneration committee member, attracted strong opposition.

More than 30% of shareholders voted against JD’s remuneration report, meaning it will automatically be added to an official ‘named and shamed’ list of firms that have attracted a major revolt.

A further 19% attempted to block a resolution that will hand chairman and chief executive Peter Cowgill a one-off £6m cash bonus.

Andrew Leslie, chairman of JD Sports’ remuneration committee, narrowly avoided being booted off the board. A total 49.7% of independent shareholders voted against his re-election, just below the 50% threshold needed to kick him out.

Almost 11% of investors also voted against Cowgill’s re-election.

Mr Cowgill, 66, was paid £2.6m in 2018, but the company has called for him to get a special payment because he has not received any long-term award over the past two financial years, nor has he been given any pension contribution payments since 2013.

JD Sports was promoted to the FTSE 100 last month following a dramatic increase in its share price.

It is now worth just over £6bn.

The company last night said it noted the shareholder backlash and will now carry out a review. It said: “In light of these results and in view of the company’s recent entry into the FTSE 100, the board considers that this is an appropriate time to carry out a review of its practices from a corporate governance perspective.

“The company will engage with shareholders as part of this review and will focus, amongst other things, on remuneration issues. The company will provide further information regarding the results of the same in due course.”

JD Sports is due to announce its interim results on September 10.

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