Despite a significant pay rise for Asos CEO José Antonio Ramos Calamonte, the company faces escalating financial losses.
- Ramos Calamonte’s earnings increased by 43% to £1.17 million, even as Asos reported a growing pre-tax loss.
- The annual report detailed the CEO’s pay package, including a generous bonus despite declining sales.
- Asos’s turnaround plan is claimed to be showing progress, despite market challenges.
- The retailer acknowledges the need to improve profitability and cash flow in a demanding environment.
Despite the company’s considerable financial challenges, Asos CEO José Antonio Ramos Calamonte saw his earnings soar by 43% to a total of £1.17 million. This substantial increase arrives at a time when the fashion retailer is grappling with widening losses, which neared £380 million over the past year.
The company’s annual report discloses that Calamonte received an annual salary of £716,436 in addition to bonus payments amounting to £376,801. These bonuses included an annual incentive of £361,585. Furthermore, he was awarded £15,216 from a long-term incentive plan, soon to be replaced by a new value creation plan.
Financial results show Asos’s pre-tax loss escalating from £296.7 million to £379.3 million. This comes as sales declined by 18% to £2.9 billion. Despite these setbacks, Calamonte remains optimistic, spearheading efforts in a turnaround strategy he claims are yielding ‘green shoots in performance’.
A spokesperson for Asos highlighted that all employee remunerations are board-approved and aligned with industry benchmarks, aimed at achieving strategic objectives. The spokesperson also noted, ‘Despite challenging market conditions, Asos has made considerable progress to transform the business over the last 12 months.’
Indeed, while the market remains tough, improvements in product strength and profitability have led to positive adjusted EBITDA and significantly improved free cash flow, according to the company. Yet, challenges remain, particularly in enhancing overall financial stability in a competitive retail landscape.
Asos continues to navigate financial difficulties while ensuring leadership rewards align with broader business objectives.
