New bonus target for sports boss

A potential shares windfall for Newcastle United owner Mike Ashley was today “stretched” to reflect more strong trading at his Sports Direct business.

The executive deputy chairman receives no pay from the retailer but will pick up eight million shares - currently worth around £23m - if new targets are met and the company’s earnings rise by 70 per cent over four years to £340m in 2015.

Sports Direct, which previously offered Mr Ashley six million shares based on a lower threshold for earnings, said the scheme will only pay out in 2018 and was based on “very stretching” targets.

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It also runs an employee share scheme that is currently due to give 2,000 staff an average of 5,000 shares - worth nearly £15,000 - this summer and a further 12,000 shares the following year.

The bonus, which relates to 2010 and 2011, has been one of the factors behind recent strong trading at the retailer, which today reported a 13 per cent rise in group sales to £267.6m for the nine weeks to March 25.

Sports has launched a second scheme for staff based on targets over four years, with the final trigger being earnings of £300 million in the 2015 financial year.

With today’s sales figures ahead of City expectations, shares rose 3 per cent to 293.65p.