Boohoo and THG braced for revolts by shareholders
Troubled fast fashion retailer Boohoo faces shareholder revolt at its annual general meeting as consultancies oppose management bonuses
Trouble: Fast fashion retailer Boohoo is facing a shareholder revolt
Troubled fast-fashion retailer Boohoo is facing a shareholder revolt at its annual general meeting as consulting firms oppose management’s bonuses.
Institutional Shareholder Services (ISS) urged investors to oppose the pay report on Thursday after the remuneration committee decided to increase bonuses for the year through the end of February.
“There is no compelling reason for this adjustment, taking into account overall performance,” ISS said.
Boohoo’s boss John Lyttle was awarded a £650,000 bonus, bringing his total wage package to £1.35m, despite a loss of nearly £91m, from a £7.8m profit the previous year. Investors were annoyed because the stock has fallen 48 percent over the past year.
Another consulting firm, Glass Lewis, is concerned that new CFO Shaun McCabe had a “significantly higher” base salary than his predecessor.
Rebellion is also brewing at fellow online retailer THG on Wednesday.
ISS and Glass Lewis have called on shareholders to vote against the reappointment of longtime non-executive director Iain McDonald.