Sports Direct said Keith Hellawell plans to step down as chairman and as a director of the company, having served since November 2009.
Hellawell will retire with effect from the conclusion of Tuesday’s annual general meeting (AGM), and will therefore not be seeking re-election. David Daly, non-executive director, will take up the role of chairman at the conclusion of the AGM. He will also take on the role of chair of the nomination committee.
Senior Independent Non-Executive Director Simon Bentley has also decided to retire as a director of the company, having served on the board since 2007. He will retire with effect from the conclusion of the AGM, and will therefore not be seeking re-election.
Furthermore, Nicola Frampton is to join the board as non-executive director with effect from October 1, 2018, and Cally Price has been elected by the workforce as the next Workers’ Representative to the Board from May 2019.
Chief Executive Mike Ashley said: “I would like to thank Keith and Simon for their valuable service and significant contributions to the Company over the years. Meanwhile, we are delighted to welcome Nicola and Cally to the boardroom, and look forward to David Daly taking up the role of Chairman.”
Hellawell said: “Having overseen significant improvements in the working practices and corporate governance of the Company, which includes a refresh of the Board, now is the right time for me to step aside. I have every confidence that the Group will continue to go from strength to strength. I have enjoyed the challenges of Sports Direct and the support of Mike Ashley; many major investors; members of the Board and senior staff, and wish them much success for the future.”
Bentley said: “It has been a privilege and a pleasure to serve as a director, and a member of the Sports Direct team, since floatation in 2007. I look forward to following the Group’s exciting development in years to come. ”
Nicola Frampton is a senior executive at William Hill, where she is managing director of the UK Retail division. Prior to joining William Hill, Frampton gained extensive experience in risk management, assurance and corporate governance across a wide range of industries while working in professional services, most recently with Deloitte. Nicola will join the Board as a Non-Executive Director on 1 October 2018. She will also be a member of the Audit and Remuneration Committees.
Nicola commented: “Sports Direct is one of the best retailers in the UK today and has embarked on the most exciting phase of its strategy. I am looking forward to working with the team and contributing to its future achievements on joining the Board.”
Cally Price is a store manager in Cardiff Bay, having originally started with Sports Direct as a casual worker in July 2007. Cally will assume her role as Workers’ Representative on 1 May 2019, following a handover period when the current Workers’ Representative completes his term of office.
Price said: “I would like to thank the people at Sports Direct for placing their trust in me, and I look forward to working alongside Alex during the forthcoming handover period.”
The changes come as Glass Lewis, an influential investor group, last month urged investors to vote against the re-election of Hellawell and Bentley, along with Sports Direct’s billionaire founder Mike Ashley.
The group cited “poor governance” and inadequate responses to shareholder concerns for its decision. It also warned Sports Direct’s plans to acquire House of Fraser, which were announced just after the department store went into administration, had drawn attention from regulators.
“Shareholders should be concerned with any type of regulatory investigation involving the company, as such matters could potentially expand in scope and prove to dampen shareholder value,” Glass Lewis said.
In a separate statement tied to the AGM, Sports Direct reaffirmed that its sales are in line with expectations and in line with company expectations of achieving between a 5 percent and 15 percent improvement in underlying EBITDA for the current financial year, excluding the acquisition of House of Fraser.
Ashley said: “Our strategy to transform House of Fraser into the Harrods of the High Street will be a game changer.”
