« A rotation too far | Main | Steamrolling to the top »
Stand by your FD
I note that reports in the press say Bob Mellors, finance director at Sports Direct, has been handed an exceptional bonus of £5m.
That's a nice sum and should ensure that the Mellors' family Christmas this
year is no Bob Cratchett affair.
But I can't imagine it's going to change the mind of City figures who only a
couple of weeks ago were telling Sunday newspapers, unattributably, that
Mellors had to go. The Sunday Times quoted one analyst as describing
presentations by the embattled FD as 'farcical'.
The source of that quote must be somewhat dumbfounded at the size of Mellors
bonus.
At the moment there can't be an FD of a listed company in the country that feels
more besieged than Mellors. And once the analysts start briefing against you the
City can suddenly seem like a very lonely place to do business.
What seems to be emerging, more than anything else however, is how loyal
maverick chief executive and Sports Direct founder Mike Ashley is to his FD.
You can imagine how a CEO more sensitive to the damage press reports can do
could be cowed by the pressure exerted by the comments of analysts and
investors appearing in national newspapers. But Ashley looks as if he is made
of tougher stuff. And despite the somewhat eccentric exterior Ashley is also regarded
as a man who really knows his business - 'inside out' it is said. Could it be
beyond the City to trust his judgement on Mellors because, for the time being
at least, Ashley seems to be standing by his man. To the tune of five million
quid, apparently.
TrackBack
TrackBack URL for this entry:
http://blogs-1.gos.vnu.net/mt-tb.cgi/84125
Listed below are links to weblogs that reference Stand by your FD.
Ashley definitely knows his stuff - as does Mellors. People forget that Mellors is the man who - for the last 20+ years - has managed the increasingly complex financial dealings of Sports Direct with astounding success. Ashley takes a long term view - as does Mellors. City investors who stay in for the long term will see real benefit, thanks to people like Mellors who know how to generate profits.
Posted by :David Thompson | August 10, 2007 5:47 PM
Problem is David, not all investors are long term. They want to see what happens this quarter and that it's showing results. They also want someone to front up and talk to them in language they understand. They may not like the 'long term' plea and they certainly take offence if someone doesn't do presentations too well.
The problem is when do the complaints about your FD and the perception of his skills become a threat to your share price, and when do you act on that?
Posted by :Gavin Hinks | August 10, 2007 6:16 PM