Asos awards its CEO a significant pay rise amidst escalating losses.
- José Antonio Ramos Calamonte’s pay rose by 44% to £1.17m this year.
- Despite this, Asos faced a dramatic 18% drop in revenue, falling to £2.9bn.
- The company reported substantial operating losses amounting to £331.9m.
- An Asos spokesperson emphasised improved profitability and strategic progress.
Asos has defended a £300,000 salary increase for its CEO, José Antonio Ramos Calamonte, attributing the raise to his role in improving profitability. Despite the financial year ending with operating losses of £331.9m, the CEO’s annual pay rose by 44% to £1.17m. This increase consists of a base salary of £716,436 and a total of £376,801 in bonuses, with an annual bonus of £361,585.
The online fashion retailer experienced a notable 18% decline in revenue, dropping to £2.9bn due to decreased consumer demand and intense competition from budget fashion sites and resale platforms. Losses before tax also increased significantly to £379.3m from £296.7m the previous year.
An Asos representative stated that all compensation packages, including bonuses, undergo board approval processes and are aligned with industry standards and strategic objectives. The spokesperson claimed that Asos had made substantial progress over the past year despite tough market conditions.
Asos highlighted several positive developments, such as strengthening its product offering and achieving improved profitability, which led to an adjusted EBITDA of £80.1m and significantly better free cash flow of £37.7m compared to the previous year.
Asos navigates a challenging fiscal landscape, justifying executive pay hikes through improved strategic outcomes.
