The new plan will make it easier for chief executive John Lyttle and his top lieutenants to get their bumper payouts.<\/p>\n
It had been hailed as a \u201cgrowth plan\u201d by bosses when they unveiled the idea in January. The hope was that the incentives \u2013 which are target driven \u2013 would help improve performance.\u00a0But more than 37% of votes were cast against the incentive scheme when shareholders had their say on Wednesday (8 March).<\/p>\n
\u201cThe remuneration committee will reflect on feedback gathered throughout the consultation process regarding the growth plan, and will continue to engage with shareholders with regard to the group\u2019s remuneration policy to ensure that shareholder views are considered,\u201d Boohoo said after the result.<\/p>\n
To get the full payout, which also includes \u00a325 million for chief financial officer Shaun McCabe and \u00a320 million for co-founder Carol Kane, John Lyttle will have to drive a real turnaround in Boohoo\u2019s share price.<\/p>\n
John Lyttle<\/p><\/div>\n
If the company reaches a market value of around \u00a35 billion within the next five years and stays there for around three months the trio, and others, will get the full payout.<\/p>\n
It is a more generous offer to the bosses who previously had to grow Boohoo to \u00a36 billion before getting the full payment.<\/p>\n
Boohoo is currently worth around \u00a3690 million on the London Stock Exchange. Its shares have come down significantly since their peak during the pandemic. They dropped from more than \u00a34 in June 2020 to around 50p today.<\/p>\n
Co-founder and executive chairman Mahmud Kamani said: \u201cAs Boohoo\u2019s largest shareholder I wholeheartedly endorsed the growth plan, recognising the importance of aligning the interests of all shareholders with those of our hardworking Boohoo colleagues.<\/p>\n
\u201cThe value generated for shareholders would be some 25 times greater than the maximum award of the plan, and I am therefore pleased that it is being implemented.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
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Boohoo shareholders narrowly approve plan which could hand CEO John Lyttle a \u00a350m bonus - TheIndustry.fashion<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n