Sports Direct braces itself for investor fury at AGM

Sports Direct is in the midst of preparing itself for tough investor criticism at the company's annual general meeting later this week, as yet another shareholder announced they aimed to oppose the reappointment of chairman Keith Hellawell.

Hermes Investment Management is the latest shareholder to join a growing list of investors calling for Hellawell's departure. Last week saw three of North America's largest investors, the Ontario Teachers’ Pension Plan, CalPERs and CalSTRs come forward and confirm their vote against both Hellawell and executive deputy chairman Mike Ashley at the AGM on Wednesday. Other UK investors, including Legal & General, Aberdeen Asset Management and Royal London, are also believed to be voting against Hellawell reappointment.

The meeting, which will be open to the press and public for the first time, will likely see investors vent their frustrations with Sports Direct, which saw its shares plummet 43 percent this year, scratching hundreds of million of pounds from the company's value. Both Hermes and Royal London are set to vote on a trade union resolution for an independent review into staff working conditions. The resolution is said to be opposed by the Sports Direct board, but widely supported by the company's leading investors, according to the Guardian.

"The chairman, Keith Hellawell, together with independent directors Simon Bentley and David Singleton, have lost the confidence of many of Sports Direct’s minority shareholders and should step down from the board," said Leon Kamhi, Hermes’ head of responsibility to the Guardian. "An external, independent successor to the chair role should be appointed as soon as possible, followed by additional independent directors."