Boohoo faces shareholder backlash after advisory firms oppose exec bonuses

Fast fashion e-tailer, Boohoo, faces shareholder backlash at its annual general meeting as advisory firms oppose executive bonuses, due to losses of over £90 million.

Institutional Shareholder Services (ISS) has urged investors to oppose the pay report on Thursday for the year ending February 2023. This comes after the remuneration committee decided to increase bonuses.

ISS commented: "There is no compelling rationale for this adjustment, taking into account overall performance."

The CEO of Boohoo Group has been handed more than a £650,000 bonus, despite the company swinging into a loss and seeing its share price lose nearly half its value in a year.

John Lyttle took home a £1.35 million pay packet in the year to February. It was made up of his £651,000 salary, and an annual bonus also amounting to £651,000, or 100% of his base wage. This decision irked shareholders of the company as shares dipped by a startling 48% in the last year.

In addition, advisory firm Glass Lewis raised concern that the new Chief Financial Officer, Shaun McCabe, had a base salary "significantly higher" than his predecessor.

ISS and Glass Lewis have called on shareholders to vote against the reappointment of a long-standing non-executive director, Iain McDonald.

This news comes as Boohoo's share price plunged by more than 45% in the past year. The company swung to a loss of almost £91 million from a profit of £7.8 million the prior year after sales slipped by more than a 10th.

The retailer was affected by rising costs, including shipping, staffing and energy, as well as shoppers returning to the high street.