Boohoo boss could be in line for £50m bonus
The boss of Boohoo could be in line for a bonus worth as much as £50m as the fast fashion retailer seeks to overhaul its management incentive scheme and put the business back on track after a slump in its share price.
The online retailer – known for its brands including Pretty Litle Thing and Nasty Gal, and for tie-ups with celebrities including Kourtney Kardashian Barker and Megan Fox – has announced a new performance plan making it easier for the senior management team to hit targets.
Boohoo’s share price has halved over the past year from just over 98p to about 48p today, giving the company a market value of about £610m, and sales have struggled in recent months as consumers have cut their spending.
The retailer said on Thursday there was “little or no value” in its existing incentive plans, as the targets were too difficult to achieve for leaders including the chief executive, John Lyttle.
Boohoo said in a statement to the stock market that its market value had significantly decreased “against the background of the unique and unprecedented set of macroeconomic and market headwinds experienced over the last three years”.
This was “despite the strong efforts of Boohoo’s executive and senior management”.
Under Boohoo’s new “growth share plan”, Lyttle could receive a maximum of £50m in Boohoo shares out of a total £175m payout to executives, if the company’s share price reaches 395p, more than eight times higher than current levels – and remains there within a 90-day average window within the next five years.
Boohoo executives would start to receive initial payouts once the share price returned to 95p, close to the level it was at in February 2022.
Carol Kane, who co-founded Boohoo in 2006 along with the executive chairman
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