Working Conditions Under Fire, Executive Bonuses Spark Controversy
- Church of England criticizes Sports Direct’s working conditions
- Staff earning less than minimum wage while executives received bonuses
- Mike Ashley summoned before select committee of MPs
- Church voted against re-election of CEO and chairman in 2017
- Church supports increasing female representation on board
The Church of England has criticized Sports Direct founder Mike Ashley over the company’s working conditions, which were described as ‘Victorian factory’. The Church Commissioners, who manage the church’s £79bn investment fund, condemned the retail giant in a series of letters. This came to light when it was revealed that the sports retailer’s staff were earning less than minimum wage while executives received bonuses. Ashley, also owner of Newcastle United FC, faced questions from MPs on these claims. In 2017, the Church voted against re-electing Ashley as CEO and blocking the re-election of chairman Keith Hellawell, as well as an £11m back payment to his brother, John Ashley. The Church also stated it would toughen up on the company’s lack of women on its boards. A Sports Direct spokesperson said that the board received backing from independent shareholders in 2017 and acknowledged the need for female representation, with 35.1% of their senior executive team being female.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the Church of England’s criticism towards Sports Direct’s working conditions and its stance on the company’s board composition. It also includes quotes from a spokesperson for Sports Direct addressing these concerns.
Noise Level: 4
Noise Justification: The article provides relevant information about the Church of England’s criticism towards Sports Direct’s working conditions and its stance on gender representation in the company’s board. It also mentions Mike Ashley’s involvement as the founder. However, it lacks a more in-depth analysis or exploration of the broader implications of these issues.
Financial Relevance: Yes
Financial Markets Impacted: Sports Direct
Financial Rating Justification: The article discusses controversies related to Sports Direct’s working conditions and its CEO Mike Ashley, which could impact the company’s reputation and potentially affect its financial performance and stock prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article.
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