Lush understood to have forked out five million pound in bonuses to managers

Cosmetics retailer Lush is believed to have paid its managers five million pounds in bonuses last year while additionally taking 5.1 million pounds in government support.

The bonuses are understood to have been paid alongside salaries to directors, according to The Guardian, including Lush co-founder Mark Constantine, and his wife, Mo, who are shareholders.

Six employees of Lush Cosmetics, the brand’s main operating arm, are also said to have received the bonuses.

The firm is currently in the middle of a legal battle with its former boss Andrew Gerrie, who has been trying to sell his shares in Lush through his co-owned investment firm Silverwood Brands.

The Guardian noted that if the company was to distribute profits via a dividend rather than bonuses, it would have had to pay a share of them to Gerrie of Silverwood.

It comes after ordinary employees across Lush and its Cosmetic Warriors subsidiary received 1.8 million pounds in bonuses last year, with staff members outside of its management also receiving an additional 14 million pounds in the same period.

In the year to June 30, 2023, the retailer posted a 5 percent increase in sales to almost 431 million pounds, however its pre-tax profit slid from 29 million pounds to 1.7 million pounds.

Additionally, sales in the UK were down over 10 percent in comparison to 2019, but Lush forecasted at least a 5 percent rise this year.

The media outlet said that most of the government financial support received by Lush came in the form of business rates relief after it had faced disruption to its manufacturing operations during Covid.