Three pension funds plan to block Sports Direct chairman re-election

2nd Sep 2016 17:03

(ShareCast News) - Three pension funds are the latest in a round of shareholders who have said they plan to support a trade-union backed motion to call for an independent review of workplace practices at Sports Direct and block the re-election of its chairman.US public pension funds CalPers and CalSTERS and Canada's Ontario Teachers' Pension Plan, three of the world's biggets pension funds, said they will vote against the re-election of chairman Keith Hellawell and founder Mike Ashley in light of the investigation by the Guardian on conditions at its Derby-based warehouse and a damning parliamentary report.The pension funds, which own less than 1% between them, said they will also vote against the reappointment of the auditor Grant Thornton, chief executive Matthew Pearson and non-executive director Simon Bentley, who heads the company's audit committee.The pension funds join Legal and General Investment Management said it would vote against the reappointment of Hellawell and all of the non-executive directors.Aberdeen Asset Management who said it vote against Hellawell, Forsey and Pearson.The funds said they did not regard the review by the company is holding, which is being carried out by law firm RPC, as independent.The sports retailer had come under fire after being exposed last year that workers were being paid less than the minimum wage and after being criticised over its labour conditions. Sports Direct said in July it would back pay staff, which will come to about £1m.Shares in Sports Direct International were up 3.76% to 327.46p at close.