Sports Direct chairman under pressure to step down

The chairman of Sports Direct, Keith Hellawell, is coming under increased pressure to step down, according to reports.

The call is being made by City investors Aberdeen Asset Management whuch is calling for its peers to vote against the maligned Sports Direct chairman’s re-election this week.

Aberdeen join shareholder group ISS which also asked shareholders to vote Hellawell down after a “catalogue of governance and operational failures”.

ISS said: “As chairman, Keith Hellawell has overseen a period of serious operational, governance, and risk oversight concerns which have materially affected the company’s outlook and damaged shareholder value. As such, and in light of all of the above factors, his re-election does not warrant support at this time.”

In September a majority of independent shareholders refused to back the Hellawell’s re-election. A second vote will be held tomorrow (5 January), but reports suggest he will survive as his close ally Mike Ashley controls the majority of the company.

Paul Lee, head of corporate governance at Aberdeen Asset Management, said: “Though we welcome the positive progress the company has made over the last three months we remain deeply concerned about its governance. We are therefore again opposing the election of Mr Hellawell.”