JD Group, which owns retailer JD Sports, has become the latest big company to receive a “bloody nose” over executive pay, say Sarah Butler and Jillian Ambrose in The Guardian.
Last week it faced a revolt because executive chairman Peter Cowgill “was paid almost £6m in bonuses since February last year, despite the company accepting more than £100m in government support”.
While shareholders ultimately approved the package, thanks to majority stakeholder Pentland Group, they did so with “lower levels of support” than usual. Smaller investors also voiced their anger by forcing out Andrew Leslie, the chair of the remuneration committee. Both investors and the public have “good reason” to be angry, says Ben Marlow in The Daily Telegraph.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Cowgill has steered the company through a difficult period, with online sales “booming during lockdown”, but this “weakens the case for accepting state handouts”. And it’s not the first time JD Group has behaved badly. It refused to pay rent at most of its 800 stores for two quarters and also hurt landlords by putting its Go Outdoors subsidiary into administration.
Still, Cowgill hasn’t had things all his own way, says Jamie Nimmo in The Sunday Times. In May he downplayed suggestions that he would “hand over some of his day-to-day responsibilities to a chief executive”, claiming that any CEO eventually appointed would be solely a “bag carrier”. But after last weeks revolt, a “sheepish” Cowgill was forced to admit that there is indeed a plan to bring in a CEO.
-
Spot the Dog: £67bn in underperforming funds revealedAround 137 funds consistently underperformed their benchmark, BestInvest's Spot the Dog report finds. Which funds are in the dog house?
-
What does a BP and Shell merger mean for the UK oil industry?BP’s struggles have made it vulnerable to a takeover. Could it merge with Shell to create a British behemoth?
-
What does a potential BP and Shell merger mean for the UK oil industry?
BP’s struggles have made it vulnerable to a takeover. Could it merge with Shell to create a British behemoth?
-
Should you invest in emerging markets?Emerging markets offer strong, long-term growth and excellent value, says Rupert Hargreaves
-
How to invest in frontier marketsFrontier markets can be extremely risky, but they offer access to exotic stocks in rapidly developing countries
-
Should you put your trust in investment trusts?British investors have steered clear of investment trusts in recent years. They are missing a trick, says Max King
-
Renewable energy investing: who is paying for the green revolution?Investors in renewables have not been rewarded, says Bruce Packard. Will they fund the government’s plans?
-
The best ways to invest in Vietnam – Asia’s communist dynamoVietnam has long been one of our favourite markets. The prognosis remains auspicious, says Alex Rankine.
-
India is a new global powerhouse — should you invest?India’s growth rate has slowed recently, but there is still ample scope for investors to benefit from its development.
-
Why Chinese stocks are so far out of favourThere’s little appetite for Chinese stocks despite low valuations.
