Sports Direct 2015 bonus scheme approved

Sports Direct’s 2015 bonus share scheme received approval by shareholders at its annual general meeting on 2 July.

Sports Direct

Some 60% of shareholders voted for the implementation of the bonus share scheme, which was put to shareholders in a circular on 9 June.

The terms of the bonus scheme provide for the grant of up to 25 million shares in the organisation to eligible employees, including executive directors.

The vesting of these shares would be conditional of certain performance targets, including: full-year results of £480 million in 2016, full-year results of £570 million in 2017, full-year results of £650 million in 2018 and full-year results of £750 million in 2019.

If these performance targets are all met, 25% of any award would vest following the announcement of the organisation’s audited full year results in July 2019, and 75% of the award would vest following the announcement of the organisation’s audited full-year results in July 2021.

Keith Hellawell, non-executive chairman of Sports Direct International, said: “Sports Direct’s employee bonus share scheme is one of the most wide-reaching and successful employee reward schemes in the UK. 

“The success of the scheme is demonstrated by the substantial shareholder value created over the last five years.

“The board and the remuneration committee responded to the feedback received from shareholders and the vote in favour of the resolution will ensure that the group continues to retain and motivate its hard-working employees. 

“The resolution today also recognises the substantial contribution made by [founder] Mike Ashley over many years and, as demonstrated by the previous schemes, has the potential to create a further significant increase in shareholder value.”