JD Sports activities is paying former boss Peter Cowgle £5.5m over three years, a wage of greater than £906,000 a yr and a possible bonus of as much as £450,000, in a deal to stop him from organising a rival retailer. .
Beneath the settlement, Cowgle won’t be able to work for or advise any of JD Sports activities’ opponents or rent any staff of the group for 2 years.
As well as, it has agreed to supply recommendation to its new chair, Andy Higginson, and chief govt, Regis Schultz, for a “potential interval” of three years.
The sports activities and leisurewear retailer stated Higginson and Schultz will obtain continued assist and help from Cowgill, “as they transition into their new roles”.
Higginson stated: “I’m delighted that we’ve been in a position to attain this amicable and constructive method with Peter protecting the subsequent three years. Peter has very beneficial expertise constructed up over 18 years, which we can’t afford to lose.” Need, and each Regis and I are pleased to learn from his beneficial experience and recommendation.
“This concludes what has, by any measure, been a exceptional interval of Peter’s govt management which has been a elementary a part of the enterprise’s unimaginable success story so far.
“Having now separated the roles of chair and chief govt, recruited a brand new chief govt who brings a powerful worldwide and digital monitor document, in addition to closing in on Peter’s data and expertise, JD continued the business time period. is properly positioned for. Sturdy company governance has laid the inspiration for higher efficiency.”
The multi-million pound golden goodbye is the most recent cost for Cowgill by JD, who’ve already cashed in £50m value of shares within the firm over the previous two years.
The 69-year-old resigned unexpectedly on Could 25, simply months after the competitors regulator fined the retailer greater than £4m over secret conferences with the boss of takeover goal FootAsylum.
JD Sports activities was additionally hit by a shareholder revolt over pay final yr after it emerged that just about £6m in bonuses had been paid to Cowgle regardless of the corporate accepting greater than £100m in authorities help.
Earlier, the corporate deserted a bid for division retailer chain Debenhams, however hundreds of thousands of kilos had been wiped off the worth of the sports activities retailer as particulars of the potential deal emerged. A couple of months in the past, JD Sports activities controversially put Go Outdoor’ subsidiary into administration, then purchased it again on a pricey lease.
Cowgill has led the group as its categorical chair since 2004, turning into its chief govt in 2014. It’s understood he left after the board tried to separate the 2 roles and cease efforts to herald younger blood.
His exit was a serious blow to the corporate, the place he oversaw a turnaround in fortunes after returning as chairman in 2001, three years after stepping down as finance director.
Beneath his watch, the group expanded internationally, constructed a profitable on-line enterprise and joined the FTSE 100 after buying a portfolio of manufacturers together with Sprinter, Go Outdoor and Fishing Republic.