An influential investor group has urged JD Sports shareholders to rebel against executive chairman Peter Cowgill’s pay package.
The sportswear retailer, which faced opposition on its executive pay packages last year from a fifth of its shareholders, has failed to address investors’ concerns in the following year, according to a note from Pensions and Investment Research Consultants (PIRC).
PIRC said: “There is no evidence that the company engaged with shareholders in relation to the significant opposition, nor is there any evidence that concerns behind the opposition have been addressed.”
Cowgill has received a 10.5% pay rise this year, more than double the average head office salary increase of 4.4%.
Pentland Group, which owns a 57% stake in the retailer, did not vote against its renumeration report last year.
The sports fashion chain recorded a 24% jump in full-year pre-tax profits and a 33% revenue increase in April.
PIRC also encouraged the retailer’s stakeholders to reject its annual report alongside the re-election of Cowgill as executive chairman at its annual general meeting tomorrow.
It said: “No one individual should have unfettered powers of decision as the combining the two roles in one person represents a concentration of power that is potentially detrimental to board balance, effective debate, and board appraisal.”
Cowgill has been executive chairman since 2004 but has also overseen the day-to-day running of the business since chief executive Barry Brown stepped down in 2014.