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The Markets
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Retail

Boohoo backpedals on ‘outrageous’ executive bonus plans

Boohoo Group PLC (AIM:BOO) has withdrawn a resolution from the agenda of its upcoming annual general meeting that would have given bosses sizable bonuses despite overseeing a lossmaking financial year.

An RNS published on Tuesday afternoon announced the withdrawal of Resolution 3, saying Boohoo “has decided not to implement the incentive plan at this time”.

“The company will consider further engagement with shareholders on this matter in the future,” said Boohoo.

The executive directors have also opted to waive their entire bonus entitlement for the financial year ending 29 February.

The clothing retailer reported a £160 million loss as sales fell 17% in the year and the management team failed to meet financial targets.

Despite the losses, the remuneration committee initially decided to grant bonuses, calling the results “not an accurate reflection of the excellent work carried out”.

In a report from The Times, one shareholder called the bonus plans “outrageous”.

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