ASOS share price dips after proposing incentive pay plan
ASOS is convening a general meeting on 20 August to propose changes to its remuneration policy under a new value creation plan (VCP). Since the retailer announced its policy plans on Friday, its share price has dipped.
The online retailer, which is on a mission to stop widening losses, has called a shareholder meeting to discuss replacing its long-term incentive scheme with a value creation plan.
To facilitate the introduction of the VCP, ASOS is also proposing to amend the long-term incentive section of the Directors' Remuneration Policy to incorporate the VCP.
ASOS advised shareholders that it plans to amend parts of its current policy "with a rather more geared incentive to further align executive directors and the senior leadership team with the company’s ambitious growth plans".
The new VCP "demonstrates the ambition which the plan seeks to incentivise and reward". However, shares in ASOS dropped from £3.58 to £3.44 since Friday’s announcement.
It comes as ASOS is on a mission to reverse widening losses. In April, the retailer revealed losses after half-year sales plunged by nearly a fifth as it presses ahead with "necessary action" to turn the business around, including the appointment of a new CFO.
It posted underlying pre-tax losses of £120 million for the six months to 3 March against losses of £87.4 million a year ago. Like-for-like sales fell 18% on an adjusted basis in the first half and ASOS confirmed it still expects sales to fall by up to 15% over the full year.
