Boohoo shareholders stage revolt against £175m bonus plan which could see boss handed £50m
manchestereveningnews.co.ukBoohoo's shareholders have staged a major revolt against its new £175m bonus plan. After being announced last month, the Manchester-headquartered fashion giant asked shareholders to back the proposals at a general meeting earlier today (March 8).
However, the vote saw significant opposition with 37% of votes cast against it. The new plan will see bonuses handed out over a period of time if Boohoo's market capitalisation reaches £5bn. READ MORE: Click here to sign up to the BusinessLive North West newsletter In a statement, Boohoo said: "The 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's remuneration policy to ensure that shareholder views are considered." When the plan was unveiled on February 16, Boohoo said it had been forced to rethink its bonus plan after a "unique and unprecedented set of macro-economic and market headwinds experienced over the last three years".
The Manchester-headquartered group said there is now "little or no value" in the existing Growth Share Plan or the current Management Incentive Plan after its market capitalisation "significantly decreased".
As a result, it added they "no longer operate as an effective incentive mechanism for this critical population who are responsible for driving business performance and delivering boohoo's strategic objectives".
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