Sports Direct Shares Rise as Mike Ashley Faces Questioning

Sports Direct's Mike Ashley faced questions from MPs over working practices in his company and Burberry's CEO has suffered a 75% pay cut

Karen Kwok 7 June, 2016 | 4:14PM
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Sports Direct International (SPD) founder Mike Ashley today admitted his company had paid warehouse staff below the minimum wage “at some point” when he faced questions from British lawmakers over working practices.

Having answered questions during a hearing by the Business, Innovation & Skills Committee, Ashley said he hoped the issue of paying below minimum wages would have been addressed by the pay rise the company announced at the end of 2015.

Ashley agreed too many of Sports Direct’s workers were on zero-hours contracts, another criticism levelled at the company by the Committee. Explaining the use of agency workers over direct employees, Ashley said given the growth of the business, it would not haven been possible to take on all employees directly.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Burberry Group PLC1,824.00 GBX-1.11Rating
Frasers Group PLC701.50 GBX0.21

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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