Sports activities Direct shareholders have rejected a proposed £11m cost to the brother of its founder, Mike Ashley.
The tycoon, who abstained from voting, needed to provide John Ashley the money as a again cost.
Nevertheless, the vote was greater than 70% in opposition to John Ashley receiving the sum.
Sports activities Direct mentioned: “The board respects the views of the corporate’s unbiased shareholders, and considers all these issues to be closed. We now intend to maneuver on.”
Buyers comparable to Royal London Asset Administration had mentioned they might vote in opposition to the plan.
John Ashley, who’s Mike’s elder brother, stepped down because the retailer’s IT chief in 2015.
An inside overview by Sports activities Direct authorized advisors RPC and accountants Smith & Williamson discovered that John Ashley had been underpaid for the reason that firm listed on the inventory market in 2007, and was due £11m in bonuses and awards.
The findings had been endorsed by Mike Ashley and the board, however had been criticised earlier than the vote by buyers attributable to company governance points.
Royal London Asset Administration mentioned in November that there ought to have been a transparent course of for paying John Ashley on the time.