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Boohoo is facing a backlash from its investors after awarding millions of pounds in bonuses to executives despite widened losses, The Sunday Times has reported. The fast-fashion group will reportedly face a shareholders revolt at its annual general meeting next month over proposals for a new long-term incentive scheme.
According to The Times, several big shareholders have criticised Boohoo’s plan to hand co-founders Mahmud Kamani and Carol Kane and CEO John Lyttle bonuses of £1m each.
In its latest annual report, the company said the three executives were not eligible for a bonus after financial targets had been missed in the past year. However, The Times reported that Boohoo’s remuneration committee would nonetheless grant the bonuses, stating that the outcome was “not an accurate reflection of the excellent work carried out”.
In light of this, the committee agreed to pay bonuses of 49.1% of the maximum to Lyttle, and 67.1% of the maximum to Kamani and Kane.
It comes as Boohoo’s losses widened to £160m in its latest full-year results, as revenues fell amid a challenging market backdrop over the period.
In the year ended 29 February 2024, revenues fell by 17% to £1.46bn, down from £1.77bn the prior year.
As well as difficult market conditions, including inflation and weakened demand, the group attributed its sales decline to an increased focus on profitability, as well as the growth of its commission-only revenue model.
Boohoo has been contacted for further comment.
