Keith Hellawell is to stay on as Sports Direct International PLC’s (LON:SPD) chairman after narrowly surviving a shareholder rebellion.
The 70-year-old was re-elected to the post at the sportswear retailer’s annual general meeting after gaining the support of 53% of independent shareholders.
Approximately 5% of independent shareholders withheld their votes.
Not Hellawell's first shareholder rebellion
Hellawell, a former police chief, had said he would step down if he didn’t get the backing of the majority of independent investors.
Fund manager Hermes and two shareholder advisory groups, Pirc and Institutional Shareholder Service, had recommended that investors vote against his re-election over concerns about how the business is run.
It’s not the first time that shareholders have tried to oust Hellawell, who has been chairman at Sports Direct for the past eight years.
Back in January 54% of independent investors voted against his re-appointment but he was backed by the company’s founder and majority shareholder Mike Ashley, who convinced him to stay on.
Sports Direct “optimistic” earnings guidance
Earlier on Wednesday, Sports Direct had said it was “optimistic” about this year’s performance given the strong performance of its new, more premium ‘next generation’ stores.
Reports have also come to light in recent days that the chain hasn’t kept its promise to offer guaranteed hours of work to shopworkers and transfer some of its warehouse to permanent contracts as well.
READ: Sports Direct ‘exceeding expectations’…
At today’s AGM at Sports Direct’s Shirebrook headquarters in Derbyshire, Hellawell defended the use of zero hours contracts.
“While that still is a legal form of employment we will choose if we wish to continue with that form of employment,” he said.
“A very large proportion of our workers are happy to maintain that flexibility.”
Sports Direct shares were 1.1% higher at 391.7p in late afternoon trading.