JD Sports Fashion has come to an agreement with its former executive chairman, Peter Cowgill, regarding his departure from the company. As part of the deal, JD Sports will pay Cowgill a total of £5.5 million over the next three years, subject to certain conditions.

The agreement will honor Cowgill’s contractual notice period of 12 months. Additionally, two new arrangements have been made between Cowgill and the company’s board. The first arrangement involves the implementation of new and enhanced restrictive covenants that will be enforced for a duration of two years. These covenants will prohibit Cowgill from working for or advising any of JD Sports’ competitors, as well as from soliciting any of the company’s employees. In exchange for adhering to these restrictions, Cowgill will receive £3.5 million over the course of two years, as these restrictions are considered valuable to the business.

The second arrangement entails a three-year consultancy agreement. Cowgill will be paid £2 million under this agreement, with the payment being phased throughout the duration of the agreement. The purpose of this consultancy arrangement is to ensure a seamless transition for the new chairman, Andy Higginson, and the new CEO, Régis Schultz, by providing continuous support and assistance from Cowgill. His extensive knowledge and experience in building JD Sports into a successful company are deemed essential during this transition period.

The board of JD Sports expressed their gratitude for Cowgill’s leadership and contributions to the company. They acknowledged the pivotal role he played in transforming the business since rejoining in 2004, leading JD Sports to become one of the world’s top retailers of sports, fashion, and outdoor brands. With a market capitalization exceeding £12 billion and a reported profit before tax and exceptional items of £947 million for the year ending January 29, 2022, Cowgill’s remarkable leadership and dedication were significant factors in the company’s success.

Andy Higginson, the new chairman, expressed his satisfaction with the agreement, describing it as “amicable and constructive.” Higginson emphasized the invaluable experience Cowgill gained over his 18 years with the company and the company’s desire to retain his knowledge. Both Higginson and Schultz are thrilled to have the opportunity to benefit from Cowgill’s talent and advice during their tenure.

Higginson also highlighted positive changes within the company, such as the separation of the roles of chair and CEO and the hiring of a new CEO with a strong international and digital track record. With the addition of Cowgill’s expertise, JD Sports is confident in its ability to maintain commercial success while upholding strong corporate governance.

Useful links:
1. JD Sports Official Website
2. JD Sports Reuters Profile