Mike Ashley, the owner of Newcastle United and founder of sporting goods retailer Sports Direct, has turned down his allocation of the company’s £200M bonus share scheme, after shareholders had controversially approved that proposal recently.
Mike Ashley – who needs £200M?
Answer – Newcastle United
And Mike has told the Sports Direct Board that he doesn’t want any more share-based incentives to be proposed to the shareholders that include any bonuses for himself.
Ashley is worth around £3.5B in the latest Forbes Billionaire’s ranking, and he owns the majority stake in the company he founded – Mike still owns 58% of Sports Direct.
He doesn’t receive any wages from the company, but of course with the share price of Sports Direct continuing to rise because of excellent financial results – that’s what has fueled his rising net worth over the last few years.
This is what Sports Direct Chairman Keith Hellawell has said:
“The resolution passed by shareholders to implement the 2015 bonus share scheme clearly recognizes the success of previous company-wide schemes, and the significant contribution from Mike.”
“Following recent unhelpful speculation surrounding his potential allocation, he is determined to ensure that there is the maximum number of shares available for the eligible employees.”
That’s a very good move by Mike Ashley to eliminate himself from any future share-based incentives – and other employees of the company will now benefit from those future schemes
Sports Direct is due to report its full-year results tomorrow – and they are expected to be good.
And as for Newcastle United, we would estimate the club will have revenues of around £135M and profits of over £50M for the financial year that ended at the end of last month, and those will be record revenues and profits for the Tyneside club.
Hopefully we’ll spend quite a bit of those profits over the summer in strengthening the squad.
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Written while on vacation in Newcastle, England.