LGIM votes against Sports Direct’s Chairman for third consecutive year
Sacha Sadan, Director of Corporate Governance at Legal & General Investment Management (LGIM) comments on LGIM’s voting intentions at Sports Direct International’s upcoming AGM on 7th September:
“For the third consecutive year we will be voting against the re-election of the Chairman at Sports Direct. We first voted against the Chairman in 2014 when the share price performance was still strong trading at around £7.00. Today it is trading at around £3.08.”
“We will also be voting against the re-election of all non-executive directors as we believe that Sports Direct needs a stronger body of independent non-executive directors to ensure the business is run in the interest of all shareholders. We are disappointed that there have been no new non-executive board appointments in the last five years.”
“LGIM will also support the shareholder requisition resolution on an independent review of labour practices.”
“We also fully support the statement, released today, from the Investor Forum, of which we are a member, calling for an independent review of overall governance practices. We believe that all shareholders should send a strong signal to Sports Direct calling for change.”
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LEGAL & GENERAL INVESTMENT MANAGEMENT:
Legal & General Investment Management (LGIM) is one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £853.1billion in assets for more than 3,000 clients*. Throughout the past 40 years we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across a full spectrum of asset classes including equities, fixed income, commercial property and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability- based risk management solutions.
*Source: LGIM as at 30 June 2016, including derivative positions and advisory assets. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor.