Sports Direct shows disregard for shareholder views


Ashley Hamilton Claxton, Corporate Governance Manager

1 September 2017

In a year where some companies have made meaningful progress towards improving their corporate governance, Sports Direct continues to show a serious disregard for shareholders’ views about the governance and management of the company. We have no confidence in the ability of the firm’s Chairman and non-executive directors to provide effective oversight and protect the interests of minority investors. For this reason, we will be voting against the firm’s CEO, Chairman of the Board and the Lead Independent Director. 
Pension savers like our clients, that are forced to own Sports Direct through passive holdings in index trackers, deserve better standards of governance than this. At the end of the day, it is their life savings that are at risk.

In a year where some companies have made meaningful progress towards improving their corporate governance, Sports Direct continues to show a serious disregard for shareholders’ views about the governance and management of the company. We have no confidence in the ability of the firm’s Chairman and non-executive directors to provide effective oversight and protect the interests of minority investors. For this reason, we will be voting against the firm’s CEO, Chairman of the Board and the Lead Independent Director. 

Pension savers like our clients, that are forced to own Sports Direct through passive holdings in index trackers, deserve better standards of governance than this. At the end of the day, it is their life savings that are at risk.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.