ASOS shareholders approve new executive pay plan
ASOS has revealed that its shareholders have approved its new executive pay plan, which sees the retailer’s long-term incentive scheme replaced with a Value Creation Plan (VCP).
At the general meeting held yesterday, nearly 92% of the online retailer’s shareholders voted in favour of its new Value Creation Plan, which better aligns with its "ambitious growth plans". However, the VCP "will only deliver value to recipients to the extent the share price exceeds £6.70".
Earlier this month, when ASOS called a general meeting, it said the new VCP "demonstrates the ambition which the plan seeks to incentivise and reward".
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. Almost 92% of shareholders also approved changes to this at the General meeting.
This comes as ASOS is on a mission to stop widening losses amid its turnaround plan. In April, ASOS revealed its pre-tax losses widened to £120 million in its half-year as sales dropped by 18%. It continues to press ahead with "necessary action" to turn the business around, including the appointment of a new CFO.