JD Sports Fashion has announced measures to address its executive pay policy following criticism from investors. The UK retailer has released a revised directors’ remuneration policy, along with a new Long Term Incentive Plan and Deferred Bonus Plan. These proposals will be put to a vote at a general meeting on December 13.

The company faced backlash in July after it was revealed that former CEO Peter Cowgill had received almost £6 million in bonuses since February 2021. This raised concerns, as JD Sports had received over £100 million in government support during the Covid-19 pandemic, including furlough payments and business rates relief.

In September, Andrew Leslie, the chair of the Remuneration Committee, was replaced by Suzi Williams after failing to secure enough votes for re-election at the annual meeting. In response to the lack of support for its remuneration report, JD Sports initiated a review of its policy.

In a statement to the London Stock Exchange, JD Sports explained that it had consulted with investors to better understand why its remuneration policy had consistently failed to gain institutional support. Based on this feedback, the company’s committee has developed a revised policy that aligns with best practices for FTSE 100 companies, with a greater emphasis on share-based remuneration.

JD Sports expressed gratitude for shareholder engagement and emphasized its commitment to open and transparent communication with investors going forward. The revised policy and plans demonstrate the company’s efforts to address concerns and rebuild trust with its shareholders. The upcoming general meeting will provide an opportunity for shareholders to vote on these proposals and have their voices heard.

Useful links:

– JD Sports Fashion official website: https://www.jdsports.co.uk/
– Financial Times article on executive pay policies: https://www.ft.com/content/…