Cowgill to Become Consultant for Group Following Departure
- JD Sports reaches an agreement with Peter Cowgill for a £5.5m exit deal
- Cowgill will become a consultant within the group after his departure in May
- He will receive £3.5m over two years and a consultancy agreement worth £2m for three years
- His knowledge and experience will benefit new chairmen Andy Higginson and Régis Schultz
- Cowgill’s contractual benefits and salary will be honored until May 2023
- JD Sports believes the deal is in the best interests of the business and shareholders
JD Sports has reached an agreement with former chairman Peter Cowgill, which will see him receive £5.5m in an exit deal that will put him in a consultant position for the group following his departure last May. The arrangements include a binding set of covenants for a two-year period, replacing the “very limited” provisions in Cowgill’s 18-year-old contract to align him and the company’s commercial interests, and “prevent him from working for or advising any of the company’s competitors”. Cowgill will receive £3.5m over two years for this restriction, and in addition, a consultancy agreement has been struck for an expected period of three years whereby Cowgill will be paid £2m. The group said this “ensures that both Andy Higginson and Régis Schultz receive his continuous support and assistance as they transition in their new roles”, and give ongoing access to his knowledge and experience in building JD into the company that it is today. According to JD Sports, for the period after 25 May, it will only honour his contractual notice period of 12 months. Separate from this issue, JD Sports’ board of directors, has reportedly reached an agreement with Cowgill on two new arrangements which it “firmly believes are in the best interests of the business and its shareholders”. Andy Higginson, chair of JD Sports, 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.” He added: “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.
Factuality Level: 10
Factuality Justification: The article provides accurate information about JD Sports’ agreement with Peter Cowgill, including details on the exit deal, consultancy arrangements, and the reasons behind it. It also includes a quote from Andy Higginson, chair of JD Sports, expressing satisfaction with the arrangement.
Noise Level: 3
Noise Justification: The article provides relevant information about JD Sports reaching an agreement with Peter Cowgill regarding his exit deal and future consultant position. It also includes quotes from Andy Higginson, the chair of JD Sports, expressing satisfaction with the arrangement. However, it lacks in-depth analysis or exploration of long-term trends or possibilities within the company or industry.
Financial Relevance: Yes
Financial Markets Impacted: JD Sports
Financial Rating Justification: The article discusses an exit deal for the former chairman of JD Sports and its impact on the company’s financial arrangements, which could potentially affect the company’s financial performance and shareholder interests.
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 text, but the financial agreement with Peter Cowgill is considered a minor issue as it does not involve any significant impact on the company’s operations or public safety.
www.retailsector.co.uk