JD Sports Fashion says that it has come to an agreement with its former executive chairman, Peter Cogwill, whom it obliged to step down in May after an internal review of its management.
The U.K.’s Competition and Markets Authority (CMA) had fined JD for the illicit disclosure of “commercially sensitive information” to the CEO of Footasylum, which for anti-trust reasons the CMA was compelling JD to divest.
Cogwill has received all salary and benefits due to him up to May 25, the date of the announcement, and remains eligible for the customary annual bonus, on review of his performance. This will be paid pro rata for the period he remained in full-time employment. JD will be honoring his contractual notice period for the 12 months after May 25.
The board of directors, having reached a separate agreement with him, will be imposing a “binding set of new and enhanced restrictive covenants” to prevent Cogwill from competing with the company or soliciting any of its employees for two years. In exchange Cogwill will receive £3.5 million (€4.0m) over those two years. Moreover, Cogwill will receive £2.0 million (€2.3m) over the next three years to serve as a consultant to Andy Higginson and Régis Schultz, respectively JD’s new chairman and CEO.
