D Sports have agreed to pay £5.5million to former boss Peter Cowgill after stepping down from the sportswear giant in May.
The long-serving executive chairman announced his departure with a £4.3 million fine to the retailer for sharing commercially sensitive information with Futsalom, the rival he was looking to buy for £90 million.
JD said on Wednesday that they had reached an agreement with Mr. Cowgill regarding his departure from the business.
Peter has immensely valuable experience built over 18 years that we don’t want to lose and both Regis (Schultz) and I have been able to benefit from his immense talent and mentorship.
The former boss will take home £3.5 million over two years as part of an exit agreement to prevent him from taking on a new job at a competing company or mentoring similar brands.
He will also receive £2 million to the new Chief Executive Officer, former B&Q executive Regis Schultz and Chairman, Andy Higginson, to lend their support and insights over a three-year consultation period.
The firm said Mr Cowgill will be expected to provide “continued access to his unparalleled knowledge and experience” in leading the JD as part of the exit deal.
The businessman has also been paid his salary and contractual benefits and will be eligible for pro-rata annual bonus till May 25.
Andy Higginson said: “Peter has built upon 18 years of immensely valuable experience that we don’t want to lose and both Regis and I have been able to benefit from his considerable talent and mentorship.
“This has, by any measure, been a remarkable period of executive leadership by Peter, which has been a core part of the business’s incredible success story to date.
“We are delighted that we have settled the terms of his departure and more importantly have achieved a smooth handover and access to his decades of experience while protecting our business interests.”
In August, JD lost £50 million selling Footasylum after the UK competition watchdog ordered the brand to be taken down.
JD is listed on the FTSE 100 and has a market valuation of over £12 billion.
Credit: www.standard.co.uk /