Boohoo Group has taken decisive action by choosing not to award £1m bonuses to its executive team, amid shareholder concerns.
- Executive directors John Lyttle, Mahmud Kamani, and Carol Kane opted to forgo their bonuses after discussions with shareholders.
- The waiver followed an announcement of increased pre-tax losses, rising to £159.9m from the previous year.
- Revenue and gross profit have both seen significant declines, prompting reconsideration of bonus payouts.
- The company remains open to further shareholder engagement regarding future remuneration policies.
In a notable decision, Boohoo Group’s executive team has agreed to forgo a £1m bonus amid concerns raised by some shareholders. Executive directors John Lyttle, Mahmud Kamani, and Carol Kane participated in discussions that led to this decision.
The decision to waive the bonus comes against the backdrop of the company’s recent financial struggles, including a significant increase in pre-tax losses. The retailer reported losses of £159.9m for the year ending 29 February 2024, up from £90.7m the previous year. This prompted shareholders to voice their concerns, eventually leading to the waiver.
Boohoo’s revenue has also suffered a downturn, falling by 17% year on year to £1.46bn. In parallel, gross profit has decreased by 16%, reaching £756m. These figures highlight the challenges Boohoo is currently facing and provide a context for the executives’ decision to waive their bonuses.
Although Boohoo Group initially outlined that bonuses would not be awarded per a target-based framework, the company later acknowledged the hard work of its executives. However, Boohoo also recognised that adhering to the framework did not properly reflect the performance or ensure motivation for the management team after a difficult year.
The company stated its intent to engage further with shareholders on executive remuneration in the future, acknowledging the importance of maintaining a motivated management team while being responsive to shareholder expectations.
Boohoo Group’s leadership has demonstrated responsiveness to shareholder concerns, prioritising long-term success over immediate financial incentives.
