ASOS alters annual executive bonus scheme
ASOS has loosened the criteria for its annual bonus scheme to reflect the declining finances of online fashion retail.
In a notice published on its website, the group said it was “appropriate” for its remuneration committee to “amend the performance measures and weightings” to “better align with business priorities”.
The new scheme is applicable to CEO Jose Antonio Ramos Calamonte, who replaced Nick Beighton in June of this year. It will also affect the next appointment of CFO, a role vacated by Mat Dunn at the end of October.
According to The Financial Times, the scheme can pay out a maximum of 150% of the base salary depending on performance targets (which haven’t been publicly disclosed) in a single financial year.
The weighting for revenue in the current year has been cut from the 30% to 15% and the pre-tax profit has been adjusted from 30% to 25%.
Calamonte acknowledged that the company needed to shed excess stock, with a provision of £130 million to do so. This could indicate that the company traded poorly over the Black Friday period and it will therefore have to liquidate stock at deep discounts.
ASOS posted a reported loss of £31.9 million on sales up just 1% to £3.94 billion in the year to 31 August 2022 after is performance in the second half of the year was weaker than expected, particularly in international markets.
ASOS recently confirmed it is planning to simplify its workforce as part of cost-cutting plans. The fashion e-tailer will cut more than 100 jobs across all departments, the majority of which are based at its London headquarters.