Sports direct payout to his brother rejected

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Sports direct shareholders have rejected a proposal of £11m payment to the brother of its founder, Mike Ashley.

The tycoon, who abstained from the vote, he wanted to give John Ashley cash as payment.

However, the vote was over 70% against John Ashley receives the sum.

Sports direct said: “The board of directors respects the point of view of the company’s independent shareholders, and does all these things to be closed. Now we’re going to go ahead”.

Investors such as Royal London Asset Management said it would vote against the plan.

John Ashley, who is Mike’s brother, stepped down as the retailer’s IT chief in 2015.

An internal review by Sports Direct’s legal advisors of the prc and accountants Smith & Williamson found that John Ashley had been underpaid because the company is listed on the stock exchange in 2007, due to £11m in bonuses and rewards.

The results were approved by Mike Ashley and the board, but have been criticized prior to the vote on the part of investors due to corporate governance issues.

Royal London Asset Management said in November that it would have required a clear process for the payment of John Ashley.

Sports direct called for a general assembly, at its Shirebrook headquarters to ask for the independent shareholders to vote on the results of the prc survey.

That probe found John Ashley had not been paid in line with the other leaders that have helped build the company because of concerns about how to appear to the public.