City not happy?

By Tyne Talk
July 3 2014

  Mike Ashley’s  latest 200 million bonus scheme, voted through by share holders has brought warnings from the city, the vote which eventually went through after failing 3 times, has seen Sports direct accused of ‘moving the goal posts to get its way’.

Prompted Robert Hingley, director of investment at the Association of British Insurers to state:

‘We are disappointed about the outcome. It is really important that premium listed companies adhere to higher standards of corporate governance and we are concerned that Sports Direct does not buy into that.

 ‘It certainly means the views of minority free float shareholders are going to be not fully taken into account. In the short term there is not a huge amount that can be done.’

‘In the longer term, if and when the company seeks to raise new capital on the markets the cost will be higher because of concerns about its corporate governance.’

Ashley’s fraught relationship with the city looks likely to continue with Investor lobby groups and organisations like the Institute of Directors, criticising the plans, which have the potential to grant 25 million shares worth around £180m to employees, including Mr Ashley.

 Another critic Dr Roger Barker, the IoD’s Director of Corporate Governance stated:

“It raises doubts about whether the board is acting as an effective independent check on Ashley’s power.

“The IoD believes that, in a public company involving other people’s money, an independently minded board is essential in order to balance the interests of controlling shareholders, minority shareholders and other stakeholders.“

City Warns Newcastle owner Ashley.

Discussion started by TyneTalk (IP Logged), 03/07/2014 10:34

TyneTalk
03/07/2014 10:34

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