Boohoo prepares for shareholder revolt amid £1m CEO payout
Online fast fashion giant, Boohoo braces for a shareholder revolt over a payout to chief executive John Lyttle and some executive pay rises.
The Sunday Times reported, advisory group ISS told investors to vote against Boohoo’s remuneration policy at its AGM.
The fast fashion brand, is set to payout £1.04 million to Lyttle and salary increases from 18 per cent to 30 per cent for other senior executives.
Lyttle will also be receiving a £50 million share award if he can take Boohoo’s market cap above £6 billion by March 2024. The e-tailer's current market cap is £4.5 billion.
ISS voiced there was not enough explanation behind these salaries.
Boohoo justified Lyttle’s salary was in compensation for payments he forfeited when he left his role at Primark last year to join as chief executive.
The company added that the payment and reasons for this for was notified to the stock market in July 2019, and that the other directors’ salary rises were made after comparing Boohoo against similar retailers.
Currently, Boohoo is now one of the biggest companies on AIM.