LONDON – Investors in Boohoo have reportedly expressed outrage over bonuses awarded to executives despite the fast fashion company posting losses.
According to The Times, the British company is facing increasing backlash from its investors after it was revealed that executives received millions of pounds through a new long-term incentive scheme.
The media outlet reported that Boohoo’s latest annual report acknowledged that three executives were technically ineligible for bonuses due to missing financial targets. However, the remuneration committee decided to grant the pay-outs anyway, claiming the missed targets did not accurately reflect the “excellent work carried out.”
As a result, the committee agreed to award bonuses amounting to 49.1 percent of the maximum to CEO John Lyttle and 67.1 percent of the maximum to co-founders Mahmud Kamani and Carol Kane, totaling approximately one million pounds each.
One of the top five shareholders expressed fury over the bonuses, especially after the company’s revenue fell by 17 percent and net debt increased by £100m pounds last year.
Several leading investors are reportedly planning to vote against these payouts at an upcoming annual meeting on June 20. They may also oppose the retailer’s new incentive plan.
Boohoo declined to comment on the speculation, according to The Times.
