Sports Direct chair Keith Hellawell to step down from board following pressure from City adviser
Chairman of Sports Direct Keith Hellawell is to step down from the board after the company's annual meeting later on today after facing pressure from an influential City advisory group.
Hellawell has served as chair since November 2009, David Daly, a non-exec director will take on the role of chairman after the meeting with shareholders later today.
Sports Direct also said its senior independent non-exec director Simon Bentley will retire after the meeting having served on the board since 2007.
It follows proxy firm Glass Lewis urging investors to vote against the re-election of Hellawell and Bentley, citing "poor governance".
"Shareholders should be concerned with any type of regulatory investigation involving the company, as such matters could potentially expand in scope and prove to dampen shareholder value," the firm said.
It will also add Nicola Frampton to the board alongside Cally Price, who was elected by the work force as the Workers' Representative to the Board.
"I would like to thank Keith and Simon for their valuable service and significant contributions to the company over the years," said chief exec Mike Ashley. "Meanwhile, we are delighted to welcome Nicola and Cally to the boardroom, and look forward to David Daly taking up the role of chairman."
Hellawell said:
Having overseen significant improvements in the working practices and corporate governance of the company, which includes a refresh of the board, now is the right time for me to step aside. I have every confidence that the group will continue to go from strength to strength
Earlier this morning, Sports Direct told investors trading was in line with expectations as boss Mike Ashley said his strategy for newly acquired House of Fraser would be a "game changer".
Ashley, who will not attend the meeting, could face a revolt later today, as three shareholder advisory groups urged investors to vote against the re-election of him and Hellawell.