On the money with Gavin Hinks

Gavin Hinks, AccountancyAge

First he was in the news because he wasn't allowed to speak to analysts. Then when he did there were claims in the Sundays that it was 'farcical', which turned into demands for his departure. And last week we learned that he is receiving an exceptional bonus of £5m, which is unlikely to improve his stock in the City. His personal stock, by the way, is not to be confused with the company's stock, which has also taken a tumble.

A little while ago I said Mellors' failure to front up to analysts lacked the commitment of a modern FD. But I'm beginning to see things differently.

Principally because Mike Ashley, the maverick executive and founder of Sports Direct, has stuck by Mellors so loyally despite pressure from the City and in the press. A more easily influenced CEO might have showed his FD the door, worrying that if people disliked him they would lose trust in the company and share prices would be at risk.

Not so at Sports Direct. Ashley must really like Mellors. Then a reader wrote on my blog (http://insider.accountancyage.com) vociferously defending the FD. The reasoning was that Mellors has been working with Ashley for 20 years and built the company with him. He'd done the hard work, knew the business inside out and ≠ this, incidentally, is the crux ≠ was a man that took a 'long term' view.

Now that's a novelty among listed companies where the time horizon usually doesn't extend much further than the next quarter.

Ashley therefore must also be a man who takes a long view. In which case, the pair are always going to wind up the City. Don't expect things to settle down too soon at Sports Direct.

Gavin Hinks is the editor of Accountancy Age