Asos proposes new Value Creation Plan

British e-tailer Asos has outlined a proposal to amend the long-term incentive section of its Remuneration Policy in order to incorporate a new Value Creation Plan (VCP) which will be discussed in a general meeting set to take place August 20.

With this, the company said it intends to make changes to the current dilution limits proposed in its 2022 incentive scheme, deferred bonus plan and sharesave plan.

The VCP aims to align the interests of executive directors and senior leadership with the company’s growth objectives, increasing employee interest in long-term business goals as part of further attempts to turnaround widening losses.

Despite previous efforts, Asos continued to report losses for the first half period of the year, with its adjusted pre-tax loss coming to 120 million pounds for the period alongside a sales decline of 18 percent.

At the beginning of the year, CEO José Antonio Ramos Calamonte dubbed FY24 a “year of continued transformation” for Asos, setting about on a mission to take necessary actions to deliver a more profitable business.

In Asos’ latest financial report, Calamonte said: “Asos is becoming a faster and more agile business, and we are reiterating our guidance for the full year as we lay the foundations for sustainable profitable growth in FY25 and beyond.”