JD Sports Fashion PLC (LON:JD.) suffered a big vote against its remuneration policies at its annual meeting yesterday as shareholders again demonstrated their concern over big executive bonuses during Covid-19.
The trainers and tracksuits retailer has yet to repay furlough money from the government even though it has forecast profits this year of £550mln.
Glass Lewis and Institutional Shareholder Services (ISS) had recommended investors to vote against the remuneration policy at Thursday’s meeting.
The institutional advisory groups said the £4.3mln bonus for chairman and chief executive Peter Cowgill was inappropriate given the government support.
Ahead of the meeting, Cowgill split his role to placate criticism that it was not best practice for one person to have both jobs, but 31.5% of shareholders still voted against the remuneration report.
Andrew Leslie, the head of JD Sport’s remuneration committee, was also forced to step down after 54% of independent shareholders voted against his re-election voted while 15% voted against the re-election of Cowgill.
A new remuneration policy covering future pay, bonuses and share awards got 80% approval, but this included support from majority owner Pentland that has more than 50% of the shares.
Revolts by investors against management bonuses at companies boosted by Covid-19 trends or that have received government support has been a theme of this AGM season.
Foxtons and Cineworld saw sizeable votes against their remuneration reports, while 70% of Morrisons investors voted against a bonus scheme for chief executive David Potts that stripped out Covid-19 costs.
Shares in JD rose 0.4% to 973p.