Mike Ashley has bowed out of a controversial profit-share scheme which could see 3,000 permanent staff receive a piece of £200m if profits double in 2019.
The scheme recently came under fire from investors groups and the Institute of Directors who were planning to vote against Chairman Keith Hellawell and other board members because they were unhappy with the arrangement.
In a statement on the Sport's Direct website today the company confirms that despite approval from a panel of independent shareholders that he could receive a payout he has - after discussions with the board - decided to refuse his payout.
Keith Hellawell, Non-Executive Chairman of Sports Direct International plc, said:
"The resolution passed by shareholders to implement the 2015 Bonus Share Scheme clearly recognises the success of previous company-wide schemes, and the significant contribution from Mike.
"On behalf of the entire Board, I should like to thank shareholders for the trust and confidence that they have demonstrated towards the team.
"Mike remains fully committed to achieving the scheme's stretch targets. Regarding the allocation of shares, Mike's focus is on ensuring that the scheme aligns all employees to achieve the Company's objectives.
"Following recent unhelpful speculation surrounding his potential allocation, he is determined to ensure that there is the maximum number of shares available for the eligible employees."
Mike Ashley has not received a salary or any bonus since Sports Direct was floated in 2007 when he received £929m.