Clothing retailer Sports Direct announced on Thursday that it has achieved a record pre-tax profit of GBP207.2m for the year ending 28 April 2013 and its staff are to receive a share of a GBP140m bonus pool in August, however the company has shelved plans to pay a bonus to its founder, majority shareholder and executive deputy chairman Mike Ashley.
Sports Direct has confirmed that it will not re-introduce a super-stretch bonus scheme for Mike Ashley, who owns 64% of the company and is not paid a salary. The company said the scheme failed to gain sufficient shareholder support last year, however its board will review various options with regard to his remuneration.
Staff bonus targets have reportedly been helped by a 90% rise in FTSE 250 company’s share price, as well as the boost in sales resulting from the London Olympics and Uefa European Championships. As the final part of a 2009 bonus scheme, approximately 2,000 eligible Sports Direct staff will receive an average of 12,000 shares, worth about GBP72,000 at the current share price.
The company said it is heavily committed to training its staff, with in-house programmes that are focused on both shop floor-based and classroom activities that include key elements of professionalism such as product knowledge, communication, leadership and decision making. also, staff are inducted through a bespoke online training platform.
Dave Forsey, Sports Direct’s chief executive, commented: “There is no doubt that the Group’s record-breaking results were in the large part down to our colleagues and their hard work. The Employee Bonus Share Schemes have continued to drive this performance and we are pleased that eligible employees will be rewarded in August as the second and final part of the 2009 Employee Bonus Share Scheme vests.
“Trading since the period end has remained strong and is ahead of management’s expectations for the first quarter. Whilst 2013 is a non-tournament year, there is no doubt that our compelling offer of exceptional quality and unbeatable value continues to resonate well with our customers.”