Boohoo execs waive bonuses following shareholder backlash

Top Boohoo executives have agreed to waive their entire bonuses for the financial year ended February 29, 2024, after shareholders were believed to have expressed their dissatisfaction with the initial proposal.

The fast fashion giant was faced with such backlash after it was revealed that three of its executives, including CEO John Lyttle, were to each receive around a million pounds as part of a new long-term incentive scheme.

In its most recent annual report, Boohoo had acknowledged that the trio were not technically eligible for the bonuses after missing financial targets, the rumination committee opted to grant the pay out anyway, stating that the outcome was “not an accurate reflection of the excellent work carried out”.

As such, according to The Times, one of Boohoo’s top five shareholders said they were “furious” that executives had received bonuses in light of last year’s revenue fall of 17 percent and a rise in net debt of 100 million pounds.

Now, Boohoo appears to be backtracking the decision, including entirely removing the proposed Incentive Plan from the agenda of its upcoming Annual General Meeting, scheduled to be held June 20.

In addition, the group also said that the directors have “opted to waive their entire bonus entitlement”, and instead published a restated disclosure of the directors’ “single-figure total remuneration” for the period.