This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/live/2016/sep/07/sports-direct-annual-general-meeting-showdown-mike-ashley-business-live

The article has changed 21 times. There is an RSS feed of changes available.

Version 16 Version 17
Mike Ashley: If I keep failing, I should leave Sports Direct - live updates Mike Ashley: If I keep failing, I should leave Sports Direct - live updates
(35 minutes later)
6.14pm BST
18:14
5.46pm BST
17:46
The Press Association have a good take on the Sports Direct tour - and the moment Mike Ashley stunned reporters (and perhaps staff too) by pulling out that wad of £50s:
Mike Ashley was sorry - this he wanted to make clear.
As he conducted a tour of his Sports Direct empire, he drove home the message that he was not ducking any responsibility when it came to the retailer’s problems.
Sports Direct had grown too big too quickly and its Shirebrook warehouse was not built for the age of internet shopping, he said. It was a point he made repeatedly.
He was happy to see headlines saying he was apologetic about the retailer’s problems, but not that he was making excuses, he added.
But his sense of regret at the controversies swirling around Sports Direct did not dull his sense of mischief.
As he weaved his way through the cavernous halls, he said: “I know size is no excuse and that is not a joke so please don’t any of the reporters say I am referring to anything else because I am not.”
Despite journalists and angry investors having been a thorn in his side over recent months, he appeared to enjoy showing them the site where working practices have generated so much controversy.
A swarm of investors and journalists dressed in high-visibility jackets were shown the canteen, the vast areas for picking stock and the security checkpoint.
The retail tycoon also took it upon himself to demonstrate a Sports Direct security check - a previous source of complaints by some staff.
Pulling off his jacket, he then emptied his pockets, pulling out a wad of fifty pound notes and tossing them into a security tray.
When someone pointed out it was a “lot of cash”, he replied: “Yes I’ve been to the casino,” before adding: “Now don’t please write that.”
Mike Ashley gets searched... Yes. That is a massive wad of £50 notes he just took out his pocket pic.twitter.com/zV78Qdfmec
5.36pm BST5.36pm BST
17:3617:36
Commentators have been arguing for years that British business should learn from their German rivals, and put workers in the boardroom.Commentators have been arguing for years that British business should learn from their German rivals, and put workers in the boardroom.
Prime minister Theresa May even expressed support for the idea, putting it higher on the political agenda. So Sports Direct could be ahead of a trend.Prime minister Theresa May even expressed support for the idea, putting it higher on the political agenda. So Sports Direct could be ahead of a trend.
But Roger Bull, head of the Employment Law team at independent UK law firm, Burges Salmon LLP, suggests getting the idea into law will be hard:But Roger Bull, head of the Employment Law team at independent UK law firm, Burges Salmon LLP, suggests getting the idea into law will be hard:
The appointment by Sports Direct of an employee to the Board is an astute move, no doubt intended to demonstrate that company’s willingness to embrace change and encourage employee participation.The appointment by Sports Direct of an employee to the Board is an astute move, no doubt intended to demonstrate that company’s willingness to embrace change and encourage employee participation.
“However, the Government has a far tougher task if it wants to legislate on employee Board appointments given the many questions that would need addressing, including the size of the company to whom such rules would apply, the number of employee directors, the nature and status of the role of employee director, the nature of the Board on which they would sit, the selection/election process, confidentiality, trade union involvement and pay etc.”“However, the Government has a far tougher task if it wants to legislate on employee Board appointments given the many questions that would need addressing, including the size of the company to whom such rules would apply, the number of employee directors, the nature and status of the role of employee director, the nature of the Board on which they would sit, the selection/election process, confidentiality, trade union involvement and pay etc.”
5.24pm BST5.24pm BST
17:2417:24
Sports Direct’s shares have endured a bad day, closing down almost 9%.Sports Direct’s shares have endured a bad day, closing down almost 9%.
That’s primarily due to this morning’s admission that profits will probably fall 20% this year, from £380m to £300m.That’s primarily due to this morning’s admission that profits will probably fall 20% this year, from £380m to £300m.
But investors are also unimpressed that Keith Hellawell is sticking around as chairman, despite today’s historic revolt from the City.But investors are also unimpressed that Keith Hellawell is sticking around as chairman, despite today’s historic revolt from the City.
5.07pm BST5.07pm BST
17:0717:07
Sky News’s Charlotte Lomas has spotted a fresh innovation at Sports Direct -- a list of its best stock pickers.Sky News’s Charlotte Lomas has spotted a fresh innovation at Sports Direct -- a list of its best stock pickers.
The top worker stands to win a £25 voucher -- all part of the new regime more carrot, less stick.The top worker stands to win a £25 voucher -- all part of the new regime more carrot, less stick.
Ashley at ease, cracking a few jokes as he leads us around the warehouse. Stumble across this... pic.twitter.com/I8FW4jthT2Ashley at ease, cracking a few jokes as he leads us around the warehouse. Stumble across this... pic.twitter.com/I8FW4jthT2
5.04pm BST5.04pm BST
17:0417:04
Earlier, my colleague Sarah Butler tweeted more interesting comments from Ashley from the warehouse tour:Earlier, my colleague Sarah Butler tweeted more interesting comments from Ashley from the warehouse tour:
John Lewis is something to look up to from a people point of view says Ashley.'I believe it us the best employer in the business'John Lewis is something to look up to from a people point of view says Ashley.'I believe it us the best employer in the business'
Ashley says "no doubt this publicity affects our retail stores. It must have a negative impact but how big I don't know.."Ashley says "no doubt this publicity affects our retail stores. It must have a negative impact but how big I don't know.."
Ashley says not right to say he's only worried abt bottom line. sports Dct "not anywhere near as bad a business as people try to portray it"Ashley says not right to say he's only worried abt bottom line. sports Dct "not anywhere near as bad a business as people try to portray it"
4.56pm BST4.56pm BST
16:5616:56
Here’s the full quote from Sacha Sadan, Director of Corporate Governance at Legal & General Investment Management, calling for Hellawell to quit Sports Direct.Here’s the full quote from Sacha Sadan, Director of Corporate Governance at Legal & General Investment Management, calling for Hellawell to quit Sports Direct.
“Following Sports Direct’s recent report on its own shortcomings, as well as the large independent shareholder vote against the chairman’s re-election, it is clear the Board needs to enact significant change in order to earn back shareholder trust.“Following Sports Direct’s recent report on its own shortcomings, as well as the large independent shareholder vote against the chairman’s re-election, it is clear the Board needs to enact significant change in order to earn back shareholder trust.
“At absolute minimum, we believe the current chairman should step down immediately and an external, independent appointment made to oversee management and protect the interests of all stakeholders – including employees, suppliers, and shareholders.”“At absolute minimum, we believe the current chairman should step down immediately and an external, independent appointment made to oversee management and protect the interests of all stakeholders – including employees, suppliers, and shareholders.”
4.49pm BST4.49pm BST
16:4916:49
The Trade Union Share Owners group has hailed the rebellion against Keith Hellawell today.The Trade Union Share Owners group has hailed the rebellion against Keith Hellawell today.
It believes the revolt by independent investors is a record - and one which other firms should learn from.It believes the revolt by independent investors is a record - and one which other firms should learn from.
TUSO Chair Janet Williamson says:TUSO Chair Janet Williamson says:
“Today’s shareholder uprising should act as a cautionary tale to other employers. Sports Direct’s reputation has been dragged through the mud and its share price has taken a hammering.“Today’s shareholder uprising should act as a cautionary tale to other employers. Sports Direct’s reputation has been dragged through the mud and its share price has taken a hammering.
“The company must now commit to holding a genuinely independent investigation into how the company treats its workers. Without wholesale changes to working conditions, Sports Direct risks finding itself back in the dock.“The company must now commit to holding a genuinely independent investigation into how the company treats its workers. Without wholesale changes to working conditions, Sports Direct risks finding itself back in the dock.
“Hopefully this vote will usher in a new era of investors working with unions to challenge bad employment practices.”“Hopefully this vote will usher in a new era of investors working with unions to challenge bad employment practices.”
4.40pm BST4.40pm BST
16:4016:40
Steve Turner, Unite general secretary, has responded to the shareholder revolt against Keith Hellawell today:Steve Turner, Unite general secretary, has responded to the shareholder revolt against Keith Hellawell today:
“Investors have sent a robust message to the Sports Direct board that it has much more to do to reform and regain confidence.“Investors have sent a robust message to the Sports Direct board that it has much more to do to reform and regain confidence.
As well as corporate governance Sports Direct must urgently work with Unite to put in place a framework which moves the thousands of temporary agency workers at Shirebrook on to secure, permanent direct contracts. We remain committed to work constructively with Sports Direct to help restore dignity and respect to the work place.”As well as corporate governance Sports Direct must urgently work with Unite to put in place a framework which moves the thousands of temporary agency workers at Shirebrook on to secure, permanent direct contracts. We remain committed to work constructively with Sports Direct to help restore dignity and respect to the work place.”
4.20pm BST4.20pm BST
16:2016:20
City firm Legal & General aren’t convinced by Ashley and Hellawell’s arguments.City firm Legal & General aren’t convinced by Ashley and Hellawell’s arguments.
They want the chairman to quit now, having lost the support of independent investors today.They want the chairman to quit now, having lost the support of independent investors today.
L&G calls on Sports Direct chair Hellawell to step down immediately after more than half of indie shareholders vote against his re-electionL&G calls on Sports Direct chair Hellawell to step down immediately after more than half of indie shareholders vote against his re-election
L&G: " it is clear the Board needs to enact significant change in order to earn back shareholder trust"L&G: " it is clear the Board needs to enact significant change in order to earn back shareholder trust"
4.07pm BST4.07pm BST
16:0716:07
Q: Final question, how do you feel about Iain Wright MP claiming that you and Sir Philip Green are ‘two peas in a pod’?Q: Final question, how do you feel about Iain Wright MP claiming that you and Sir Philip Green are ‘two peas in a pod’?
No, I’m far better looking than him, Ashley shoots back, before heading back into the HQ.No, I’m far better looking than him, Ashley shoots back, before heading back into the HQ.
4.06pm BST
16:06
Back to Mike Ashley....
Q: Why are you so determined to keep Keith Hellawell as chairman when the majority of independent shareholders want him to leave?
Ashley says Keith has experience of working with him, which will help with the turnaround plan at Sports Direct.
Keith knows my strengths, and my weaknesses, and we’re beginning to learn some of the company’s weaknesses, together.
Ashley’s voice almost breaks at this point:
So, we’re going to fix it. Please give us 12 months to fix it. What difference is 12 months?
We’ve done some good work in 90 days - lets do some fantastic work in 12 months.
If we fail, Ashley concludes, I’ll be stood here in a year’s time, saying “I’m sorry, I got it wrong again. When is this ever going to end?”
3.59pm BST
15:59
City investors do recognise my integrity and my experience, Hellawell insists.
But if they don’t have a change of heart over the next 12 months, I will leave.
Q: But surely your position is untenable, after today’s protest vote.
Hellawell denies it:
My position is not untenable - the majority of shareholders in this company support me.
I am here to prove to the majority of independent shareholders who don’t support me that I making a valuable contribution to this company, and over the next 12 months I’ll be judged on that contribution.
3.55pm BST
15:55
Chairman Keith Hellawell is taking questions now.
Q: Were you surprised by the scale of the rebellion against you today?
Hellawell says it’s disappointing - he needs to prove that changes have been made in a year’s time.
Q: Why didn’t you realise there were problems at Sports Direct two years ago when a women gave birth in the toilets?
Hellawell claims this incident has been misreported. It’s an “extreme example” and doesn’t represent Sports Direct as a company.
Q: Your shareholders want you to go - why won’t you?
That’s not true, Hellawell replies - the majority shareholder (Ashley) still backs me.
Q: But your shareholders don’t believe you are competent.
Hellawell says he will prove his competence over the next 12 months. He also claims that it’s “not true” that there have been problems for years and years and years
Q: They’ve been widely reported on the BBC, on ITV, SKy News, on the Guardian - if you’d read a newspaper or listened to a broadcast, you’d have been aware of them.
We are aware of the issues,and we are tackling them, Hellawell says.
3.45pm BST
15:45
Ashley: If I keep failing, I should leave
Mike Ashley then tells reporters that he should step down from Sports Direct if he can’t turn the company around.
Q: Have you been hurt by the personal criticisms from City institutions, Mr Ashley, saying you aren’t the right man to lead the company?
Ashley says he understand the frustrations, but they do hurt him personally.
But he still has to believe he’s the right man to lead Sports Direct forwards.
I’m a man who gets some things very right, and other things very wrong.
I got the staff bonus very right for a few years. Hundreds of millions [of pounds]. Fantastic.
I seem to have got the warehouse completely wrong. Totally unacceptable.
We’ve got to keep the positives and focus on the negatives.
In the end, if I keep failing and keep failing and keep failing, it’ll be best for everybody if I go. But give me some time to see if I can fix the problems first, please.
Updated
at 3.47pm BST
3.39pm BST
15:39
Ashley faces media after investor revolt
Mike Ashley and Keith Hellawell are facing the media now, after 53% of shareholders (excluding Ashley) dramatically voted against Hellawell’s re-election as chairman today.
Ashley says he welcomes Hellawell’s support and knowledge to “make a difference”
Q: But if you were serious about change, Mr Ashley, you’d accept your chairman’s resignation (tendered last week).
I am serious about change, Ashley insists. Together, Keith and I will make some huge changes.
Q: How can you have a chairman who doesn’t have the confidence of your independent investors?
Ashley says he believes Hellawell will regain the confidence of shareholders over the next 12 months. We should be given time to work on the businesses’ shortcomings.
Q: Aren’t you just sticking two fingers up to the City, politicians and the union?
That would make no sense, Ashley says. We want to make a genuine difference.
3.27pm BST
15:27
Sports Direct independent shareholders refuse to support chairman Hellawell
BREAKING: A majority of Sports Direct’s independent shareholders have voted against Keith Hellawell’s reappointment as chairman today.
Figures just released show that 53% of shares cast by investors, excluding Mike Ashley, opposed Hellawell’s re-election. Including abstentions, and a whopping 63% of shareholders refused to back him!
That’s a massive slapdown from the City.
There was also significant protests against other non-executives, as this table shows:
However, Ashley cast his shares (55% of the company) in favour of Hellawell.
That means the chairman will survive, and a new vote will be called in 90 days (where Ashley’s stake will again be decisive).
The company says that it is “disappointed to note that the resolution to re-elect the Chairman was not approved by a majority of the Company’s independent shareholders”.
Keith Hellawell has repeated that he will resign in a year’s time, if shareholders oppose him again.
“I take this clear message from our independent shareholders seriously, and I will do my best to address their concerns and earn their confidence over the next year.
I have confirmed today that should I not receive the support of a majority of our independent shareholders at next year’s AGM, I will step down at that time with immediate effect.”
3.12pm BST
15:12
Here’s a taste of our latest news story about Ashley’s clash with Unite:
Mike Ashley, Sports Direct’s founder and majority shareholder, has blamed the Unite union for the company’s problems in an angry outburst at the retailer’s annual shareholder meeting.
In a packed meeting of more than 120 people at the head office in Shirebrook, Derbyshire, Ashley was challenged by the union’s assistant general secretary, Steve Turner, over a pledge to offer shop-floor staff 12-hour contracts instead of zero hours.
Turner said he would not be surprised if few workers took up the offer as most were working much longer hours every week.
Ashley told Turner that the 12-hour promise did not mean Sports Direct would reduce hours for those who worked longer.
He said: “This is probably your fault we are in this situation because we can’t talk to you in an open manner.
“I’ve made a commitment to make a difference and I’m trying so don’t pull me down. Don’t do the whole showboating thing. It will make me turn away and the only people who suffer are people that work at Sports Direct.
More here:
3.00pm BST
15:00
Here’s a better photo of the protests outside Sports Direct’s HQ:
While Mike Ashley shows people around Shirebrook, activists continue to protest #sportsdirectshame #sportsdirectagm pic.twitter.com/BTCBUHNz07
2.59pm BST
14:59
Mike Ashley appears to have regained his good spirits:
Hellawell just left the room to deal with something. Ashley quips "probably had his hand in the till".. Er..
Maybe he enjoyed showing his warehouse off to the journalists today.
Updated
at 2.59pm BST
2.54pm BST
14:54
The Unite union are holding a demonstration at Shirebrook today.
They’re urging Ashley to offer permanent contracts to the thousands of agency workers who keep his warehouse running.
You can see them in the background, here:
Unite have played a major role in exposing the problems at Sports Direct.
Back in June, its officials told MPs about the poor conditions at Shirebrook, such as 110 ambulance callouts to the warehouse - including five for birth and miscarriage-related reasons.