A key Sports Direct shareholder has spoken out against the appointment of its long term law firm to carry out a corporate governance investigation.
Legal & General Investment Management (LGIM) released its annual corporate governance report yesterday in which it criticised the retailer for appointing Reynolds Porter Chamberlain to conduct a review into Sports Direct’s labour practices last year.
“Concerns remain about the appointment of the company’s long-term law firm to carry out the review given its close links with the company,” LGIM stated in its report.
“We will continue to engage with the company and monitor the ongoing issues.”
LGIM pushed for the corporate governance review into the sportswear retailer after last year’s scandal into working practices.
It was also one of the majority of shareholders who voted against the re-election of chairman Keith Hellawell, who was reinstated despite shareholder opposition after founder Mike Ashley utilised his majority share to vote him back in.
The investor is now pushing for higher corporate governance standards at British companies, while encouraging businesses to publish the pay ratios between median employee and chief executive.