The firm said Ashley, owner of Newcastle United, receives no salary for his role as executive deputy chairman despite his “substantial contribution” to the success of Britain’s biggest sporting goods retailer.
Shareholders will be asked to vote on 4 April on proposals to award Ashley – who owns 64 per cent of Sports Direct – options over eight million shares, worth almost £65m based on Monday’s closing price of 809p. The shares would vest in July 2018 if performance targets are met.
Chairman Keith Hellawell said: “The company has already received support from its largest institutional shareholder, Odey Asset Management, who has confirmed that it intends to vote in favour of the resolution.
“The board believes that Mike is one of the outstanding retailers of his generation and that all shareholders benefit from his on-going commitment to Sports Direct.”
The share award would depend on Sports Direct delivering underlying pre-tax profits of £330m this year, and £410m in 2015, as well as achieving a net debt to underlying earnings ratio of 1.5 times or less at the end of its 2015 financial year.