By James Simons-
Sports Direct owner Frasers Group is today calling on shareholders to back the company’s proposed new staff bonus plan at its annual general meeting today.
The scheme hopes to see employees of Mike Ashley’s retail empire receive over £100million between them, with potential rewards of £50,000 to £500,000 each for those who ‘most demonstrate outstanding performance.’ The firm also said its shareholders would not by diluted by the incentive schemes.
Another ten workers belonging to a select group of ‘Fearless 1,000′ could receive share awards worth as much as £1million under the scheme, The Eye Of Media.Com has heard. Others will get a more modest cash bonus worth up to four weeks’ salary.
The campaign, aimed at reviving its dying reputation, comes amid reports managers were asked to work while furloughed under the government’s Coronavirus Jobs Retention Scheme. And Shareholder advisory service Pirc have also recommended an opposition of Ashley’s re-election as chief executive, due to the allegations. Its public image has been severely tarnished
The group formerly under the name of its brand Sports Direct, has also faced accusations of poor working conditions at its Shirebrook factory.
The plan includes the rebranding of the firm as Frasers Group to encompass its other brands, which includes Flannels, House of Fraser and Jack Wills
This would be the first bonus scheme since 2017 when as Sports Direct International, the company paid out £43million to 2,000 of its 29,000 staff.
Frasers Group, owners of Slazenger, Jack Wills and Debenhams, promised today that unlike the 2017 payout, the new initiative would cover the ‘vast majority’ of workers.
‘This scheme strikes the right balance between rewarding as many of our people as possible whilst also potentially paying life-changing sums to those who make the most outstanding contributions,’ remarked non-executive chairman David Daly
The previous year, a parliamentary report condemned Sports Direct for its working conditions, including not paying workers the minimum wage and disciplining workers who took time off work if they were sick.
The report also condemned the fact its CEO Mike Ashley, ‘whose name is also tied with the brand of Sports Direct, would have no idea of the working conditions and practices there.’
Ashley promised to reform its employment practices. However, the company has never escaped opprobrium. In March, it promised to keep its Sports Direct shops open despite rules forcing all non-essential shops to shut. It soon made a u-turn.
After that its Debenhams department store chain fell into administration, and announced a cut of 2,500 jobs in August. The boss of the retailer later warned that it would close city centre sites unless workers came back to their offices.
In its most recent full-year results, Frasers Group revealed revenues for the year to April 26 rose 6.9 per cent to £3.96billion, but pre-tax profits were down 12.9 per cent to £101million.