Yahoo Finance Boohoo investors revolt over pay rises and bonuses for execs
Online retailer Boohoo (BOO.L) faced a backlash from investors yesterday over plans to award bonuses and pay rises to its executives.
A third of shareholders taking part in the ballot voted against the fast-fashion brand's remuneration review, reports The Telegraph.
The company proposed a £1m ($1.2m) payout to chief executive John Lyttle and salary increases of up to 30% to other senior executives. It also included a £50m bonus for Lyttle if the company is worth £6bn by March 2024.
Shares in the retailer jumped 35% this year, making its valuation just £800m below the threshold for Lyttle's bonus.
The company raised £200m last month to fuel its acquisition of high street chains Oasis and Warehouse, which Boohoo bought on Wednesday. These clothing brands will sit alongside its expanding portfolio which includes Coast, Karen Millen, Pretty Little Thing and Nasty Gal.
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Earlier this month independent advisory group ISS recommended shareholders vote against Boohoo's pay policy at the annual meeting on Friday.
ISS claimed there was a lack of explanation for the executive payout or wage rises.
The brand has successfully managed the coronavirus outbreak with shares rising dramatically due to investors anticipating an acceleration in online sales during lockdown.
Boohoo reported sales of £367.8m for the three months to the end of May, an increase of 45% on last year.
"We're not just a UK retailer, we're a global retailer and we really see ourselves growing into something similar like [Zara owner] Inditex Group or H&M Group. That is our ambition-to be a global online player," Lyttle said this week.
