Boohoo shareholders to reportedly revolt over exec bonuses

Investors of Boohoo have reportedly expressed anger over bonuses paid to executives despite the fast fashion giant reporting losses.

The British company is believed to be facing mounting backlash from its investors after it was revealed that executives had received millions of pounds as part of a new long-term incentive scheme, according to The Times.

The media outlet reported that while the company had recognised in its latest annual report that three executives were not technically eligible for bonuses after missing financial targets, the remuneration committee were to grant the pay out anyway stating that the outcome was “not an accurate reflection of the excellent work carried out”.

As such, the committee agreed to pay bonuses of 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, totalling around one million pounds each.

As such, one of the top five shareholders have said they were “furious” that executives had received bonuses after revenue fell 17 percent and net debt rose by 100 million pounds last year.

In addition to this, several leading investors are believed to be planning to vote against the payouts at an upcoming annual meeting on June 20, as well as possibly voting against the retailer’s new incentive plan.

The Times noted that Boohoo declined to comment on the speculation.