Boohoo Group PLC (AIM:BOO) faces a shareholder revolt over its plans to reward bosses with sizeable bonuses despite the losses they made in the past year.
The clothing retailer reported a £160 million loss as sales fell 17% but its annual report showed that, even though the management team failed to meet financial targets, the remuneration committee decided to grant payouts anyway as the loss was “not an accurate reflection of the excellent work carried out”.
Several major shareholders are planning to vote against the proposed £1 million bonuses for co-founders Carol Kane and Mahmud Kamani as well as CEO John Lyttle at next month's annual general meeting, according to the Sunday Times.
The annual report said the remuneration committee "feels that the formulaic outcome is not an accurate refllection of the excellent work carried out during the year to set the business up for future success, nor will it ensure that the management team is motivated and retained throughout the next financial year which will be pivotal for the group̧s long-term success".
As such, the committee decided to pay annual bonuses of 4.1% of the maximum possible for Lyttle and 67.1% of the maximum to Zamani and Zane.