The pureplay fashion retailer is facing a revolt from shareholders after its senior executive team was rewarded with bonuses despite the business raking up a loss of nearly £160m, The Times reported.
Boohoo shareholders are set to revolt at its upcoming annual general meeting over the decision to reward top bosses with £1m in bonuses despite the business reporting losses of nearly £160m.
Co-founders Mahmud Kamani and Carol Kane and chief executive John Lyttle were awarded a bumper package as part of the group’s long-term incentive scheme, which includes £300,000 in cash and £700,000 in shares in the fashion giant.
A top five shareholder told The Times they were ”furious” over the bonuses after its full-year revenue fell 17% year on year to £1.4bn, which Boohoo said reflected “difficult market conditions”.
Another shareholder who plans to vote against bonuses said the reward was ”outrageous”.
They added: “I have never seen proposals for a new long-term scheme that hasn’t been discussed with shareholders.”
The news comes after Boohoo recorded a loss before tax of £159.9m, increasing from £90.7m year on year.
Gross profit dropped 16% to £756m, while adjusted EBITDA declined 7% to £58.6m.
UK revenues also fell 16% year on year to £921m, which the group said reflected the “impact of the macro environment on consumer demand” as well as price investments and “the increase of Debenhams marketplace within the sales mix”.
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