|
JD Sports Fashion PLC on Wednesday agreed terms for former executive chair and chief executive Peter Cowgill to depart from the business.
The Sportswear retailer said Cowgill will be paid his full salary, benefits and bonus up to May 25, when he had stepped down. From May 25, JD Sports will honour Cowgill's contractual notice period of twelve months.
The board also reached two arrangements with Cowgill which it said were ‘in the best interests of the business’.
The first is a set of restrictive covenants for a two-year period, replacing more limited provisions that were in Cowgill's 18-year-old contract. He will receive £3.5 million over two years, under the agreement that he will not work for or advise any of JD Sports's competitors.
The second is a consultancy agreement for an expected period of three years for which Cowgill will be paid £2 million, phased over the life of the agreement, the Lancashire, England-based company said.
Back in July of last year, JD Sports had bowed to shareholder pressure over its corporate governance, agreeing to split the chair and CEO roles. Cowgill had served as both executive chair and CEO of JD Sports, since taking up the latter position in 2014.
Last month, JD Sports named Regis Schultz as its new chief executive, joining from Al-Futtaim Group, a Dubai-based conglomerate where Schultz was president of retail.
‘Having now separated the roles of chair and CEO, recruited a new CEO who brings a strong international and digital track record, as well as locking in the knowledge and experience of Peter, JD is well positioned for a period of continued commercial outperformance underpinned by strong corporate governance,’ said Chair Andy Higginson.
JD Sports Fashion shares were 0.3% lower at 122.55 pence each in London on Wednesday morning.
Copyright 2022 Alliance News Limited. All Rights Reserved.
|
