The backlash from shareholders has caused Boohoo to scrap its plans to pay its co-founders and chief executive bonuses worth £1 million.

It was reported over the weekend that “several” investors planned to vote against the retailer’s plan to award bonuses of £1 million to founders Mahmud Kamani and Carol Kane, as well as chief executive John Lyttle, despite announcing almost £159.9 million in losses earlier this month.

The three executives would receive £300,000 in cash and £700,000 in company shares.

In its report, the online womenswear giant said that while none of the executives were eligible for bonuses after missing financial targets, its remuneration committee agreed to the payouts, feeling that the “formulaic outcome is not an accurate reflection of the excellent work carried out during the year”.

However, Boohoo said today that it had “engaged with certain shareholders [and] has decided not to implement the incentive plan at this time,” according to The Guardian.

It continued: “The executive directors have also opted to waive their entire bonus entitlement for the financial year ended 29 February 2024.”

Boohoo disclosed earlier this month that its losses had spiked from £90.7 million to £159.9 million due to “difficult market conditions” as a result of high inflation and dwindling consumer demand.

In the 12 months to February 29, sales nosedived 17% to £1.46 billion, which the group said reflected its “increased focus on profitability” and the aforementioned market conditions.

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