Company needs praise for leading an ultimately doomed campaign for better boardroom governance at Sports Direct

Congratulations to Royal London Asset Management for leading the campaign for better boardroom governance at Sports Direct. Somebody needed to step up. Voting against the re-election of Mike Ashley, the company’s founder, deputy chairman and 55% owner, is obviously a doomed cause. But it may draw attention to the many failings of the non-executive directors. Here are a few lowlights from a long list:

First, allowing the company to punt on Tesco shares via a put-option agreement with Goldman Sachs. Ashley should risk his own cash, not shareholders’, on such adventures. The risible explanation was that Sports Direct, which operates a few shops within Tesco stores, wished to reflect its “growing relationship” with the supermarket chain. Nonsense. Tesco couldn’t give a damn about the bet.

Continue reading…
Source: The Guardian Circular Economy RSS