REG - JD Sports Fashion - Update on Directorate Change

JD Sports FashionAnnouncement

21/09/2022 07:00

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RNS Number : 0537A  JD Sports Fashion Plc  21 September 2022

21 September 2022

 

JD Sports Fashion Plc

Update on Directorate Change

 

Further to the announcement of 25 May 2022, JD Sports Fashion Plc ("JD" or the
"Company") is pleased to report that it has reached agreement with Peter
Cowgill with respect to his departure from the business.

 

For the period up until 25 May 2022, Peter has been paid his salary,
contractual benefits and will be eligible for any appropriate annual bonus,
subject to usual performance conditions, which will be paid on a pro rata
basis for the period he remained in full time employment. For the period post
25 May the Company will honour his contractual notice period of twelve months.

 

Separately, the Board of Directors ("Board") has reached agreement with Peter
on two new arrangements (the "Arrangements") which it firmly believes are in
the best interests of the business and its shareholders.

 

The first is a binding set of new and enhanced restrictive covenants for a
two-year period, replacing the very limited provisions in Peter's 18 year old
contract. These align Peter and the Company's commercial interests, prevent
him from working for or advising any of the Company's competitors, and prevent
him from soliciting any of its employees. Peter will receive £3.5 million
over two years for this valuable restriction.

 

The second is a consultancy agreement for an expected period of three years
for which Peter will be paid £2 million phased over the life of the
agreement. This agreement ensures that both Andy Higginson and Régis Schultz
receive his continuous support and assistance as they transition in their new
roles, and more importantly give ongoing access to his unparalleled knowledge
and experience in building JD into the successful company that it is today.

 

The Arrangements constitute a smaller related party under Listing Rule
11.1.10.

 

The Board of JD acknowledges the tremendous role that Peter played in leading
the team that transformed the business he re-joined in 2004 into one of the
world's leading retailers of sports, fashion and outdoor brands. JD's market
capitalisation exceeded £12 billion and reported headline profit before tax
and exceptional items of £947 million in the year to 29 January 2022, both of
which stand as testimony to his remarkable and successful leadership and
contribution.

 

Commenting on the update, Andy Higginson, Chair said:

 

"I am pleased that we have been able to reach this amicable and constructive
way forward with Peter covering the next three years. Peter has hugely
valuable experience built over 18 years which we do not want to lose and both
Régis and I are delighted to be able to benefit from his considerable talent
and advice. This caps off what, by any measure, has been a remarkable period
of executive leadership by Peter who has been such a core part of the
business's incredible success story to date. We are pleased to have settled
the terms of his departure and more importantly, to have secured a seamless
handover and access to his decades of experience, whilst best protecting our
commercial interests.

 

"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."

 

Enquiries:

 

JD Sports Fashion
Plc
Tel: 0161 767 1000

Andy Higginson, Chair

Neil Greenhalgh, Chief Financial Officer

 

FGS
Global
                             Tel: 0207 251 3801

Rollo Head

Jenny Davey

James Thompson

 

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