Sports Direct is to review its incentive arrangement after failing to reach the full year earnings targets required to trigger payments under its annual share-based bonus scheme.
For the 2,000 eligible employees to receive a payment under the existing annual bonus scheme, Sports Direct needed to record earnings of £420 million, however, the retailer instead achieved £381.4 million.
Bonus payments from previous years’ schemes saw employees each take away £9,147 in 2012, £48,305 in 2013 and £12,816 last year.
Dave Forsey, chief executive at Sports Direct, said: “Unfortunately, our disappointing results have meant that the group has not achieved the first EBITDA target set by the 2015 share scheme, which is a key long term share-based incentive scheme that rewards eligible staff for their hard work and commitment, and is based on the achievement of four consecutive full-year EBITDA targets.
“This is very disappointing as the share scheme is a significant part of our high performance and reward culture, and we are working to replace this arrangement with a new incentive scheme to continue to reward our people for their commitment and performance.”