Boohoo shareholders ‘furious’ at ‘outrageous’ boss bonuses
Shareholders at Boohoo Group will reportedly revolt over a decision to hand top bosses £1m bonuses, despite the company reporting a £160m loss.
The online fast-fashion giant, which also owns Debenhams and Karen Millen, is set to face backlash from a number of shareholders over its new long term incentive scheme, The Times reported.
Co-founders Mahmud Kamani and Carol Kane were handed the bumper pay packet alongside chief executive John Lyttle.
The bonus was made up of £300,000 in cash and £700,000 in shares in the Manchester-headquartered group.
But several shareholders are not pleased with the decision and will vote against the payouts at the upcoming annual general meeting (AGM) in June.
One top-five shareholder told the outlet they were “furious” that bosses had received bonuses after revenue had fallen by 17 per cent.
They are also planning to put a thumbs down on Boohoo’s long term incentive plan for executives.
Earlier this month, Boohoo outlined a “refreshed approach” to incentivising its executive directors and senior management, “in order to ensure that the key drivers and talent are appropriately motivated and remain in place to deliver future growth”.
One large shareholder, who planned to vote against it, also told The Times it was “outrageous”. “I have never seen proposals for a new long-term scheme that hasn’t been discussed with shareholders,” they said.
Boohoo, which is promoted by the likes of Love Island star Molly Mae, has fallen on tough times spurred on by the cost of living crisis.
Increased competition from ultra fast fashion rival Shein has also hindered sales.
Morning Wire has approached Boohoo for comment.