Sports Direct shareholders have moved to block Mike Ashley from receiving a bonus package, potentially worth over £70m.
The deal, which would have seen the businessman and Newcastle United owner receive 8m shares under a ‘supplemental executive bonus share scheme’, was due to be agreed on Friday, April 4,
However, a note posted on the London Stock Exchange said an insufficient number of shareholders were satisfied for the move to go ahead.
Dave Singleton, non-executive director and chairman of the remuneration committee, said: “During our on-going discussions with institutional shareholders, it became apparent that, while we had the support of some of our largest shareholders, we had not been able to secure the requisite level of shareholder approval.
“While the Board is disappointed that this resolution will not now be passed, we respect shareholders’ views.
“We remain convinced of the benefit of aligning Mike Ashley’s interests with those of all other shareholders.
“The final outcome is particularly disappointing given that a clear majority (over 60%) voted in favour of the original scheme proposed in September 2012 and we narrowly missed the required support for the Supplemental Executive Bonus Share Scheme.”
The sports retailer now plans to seek shareholder approval for another bonus scheme for implementation in 2015.
It would make 25 million ordinary shares available to participants if the firm met certain performance criteria.