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Sports Direct to announce £87.5m staff bonus

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Sports fashion and apparel retailer Sports Direct is set to announce the sectors biggest ever incentive scheme payout during its result announcement on Thursday, according to the Financial Times (FT).

Shared between around 2,000 staff members, it is estimated that the collective bonus will amount to £87.5 million, meaning each employee will receive £43,750 in payments spread over the next two years.

The incredible bonus is worth more than double the average take-home salary of the lucky employees, based both in stores and at the firm’s head office in Shirebrook.

Introduced in 2009, the scheme is dependent on reaching high earnings targets, which are expected to be achieved when the company reports full-year results later this week.

Speaking to the FT, Sports Direct CEO Dave Forsey said: “We introduced the bonus scheme with the aim of ensuring that the whole group was aligned to try and meet the ambitious targets for the continued growth of the business.

“We are looking to reward our colleagues as they truly deserve – we couldn’t have achieved the growth over the past two years without them.

“There is no doubt that this unique scheme has improved staff retention, and we look forward to unveiling the next phase of our bonus scheme at results on Thursday.”

Many of those receiving the bonus have already stated to management that they will use the money as a deposit for property or to pay down existing debts.

Sport Direct has profited in a challenging sector of retail by concentrating on its fashion offering, and in the nine weeks to March 27th retail sales grew by 12.4 per cent year-on-year.

Last week the retailer announced that it had purchased the USC and Cruise fashion brands from Sir Tom Hunter in a deal worth a reported £7 million.

Published on Monday 11 July by Editorial Assistant

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