JD Sports under fire for ‘inappropriate’ chairman bonus
JD Sports is facing fierce criticism for paying bonuses to executive chairman Peter Cowgill despite taking tens of millions of pounds in government support.
In a damning report shareholder advisory service Glass Lewis recommended that investors vote against the company’s “inappropriate” pay policy.
It also said shareholders should oppose Cowgill’s reelection due to inadequate succession planning and a lack of progress on boardroom gender diversity, the Sunday Times reported.
Cowgill was paid £4.3m in bonuses last year — including £3m deferred from a special bonus in 2019 — taking his total pay packet to £5m even after a 75 per cent pay cut.
JD Sports claimed more than £61m from the furlough scheme and benefited from around £38m from business rates relief.
It was granted £300m from the Bank of England’s emergency liquidity programme, though never used the funding.
Glass Lewis said the retailer should have substantially reduced or scrapped bonus awards.
JD’s board stepped up succession planning last year amid concerns about the power held by Cowgill, who has run the company and served as chairman for 17 years.
But earlier this month it hit back at speculation that the boss was on the way out, saying it had not engaged in any process to recruit a new chief executive or chairman.
The fashion chain reported pre-tax profit of £324m last year — well ahead of market expectations — as a shift to online trading helped to offset store closures during lockdown.
JD’s annual meeting is scheduled for 1 July.