Boohoo new bonus scheme leaves bosses in line for £150 million pay dayComments Off on Boohoo new bonus scheme leaves bosses in line for £150 million pay day
Boohoo bosses could share a £150 million bonus pot if the company’s shares soar over the next three years.
The retailer which owns Nasty Gal, Pretty Little Thing, Coast and Karen Millen, said the new plan was designed to “motivate long-term sustainable growth for its shareholders, as the group targets a continuation of the exceptional levels of performance that it has delivered since IPO”.
In order to access the money on June 17 2023, shares must grow by 66% giving the company a market capitalisation of £7.55 billion. The group’s current market cap is £4.5 billion.
Participants in the scheme include co-founders, Mahmud Kamani and Carol Kane, who will each receive £50 million or a third of the payout, and the chief financial officer, Neil Catto, who will get 6.67%.
Also included in the plan is Samir Kamani, the son of Mahmud, and the chief executive of the menswear brand boohooMAN, who is in line to receive 16.67% of the bonus pot.
The remaining 10% is to be used to incentivise other key individuals in the wider management team.
Boohoo said the incentive plan will not be put to a shareholder vote.
“The Remuneration Committee has undertaken some shareholder consultation and taken on board feedback received.
“The Remuneration Committee believes that the interests of shareholders will be best served by granting the awards immediately to the recipients without recourse to a shareholder vote, which will ensure that they are immediately incentivised to deliver stretching share price growth for the benefit of all Boohoo’s shareholders as the group executes its multi-brand online strategy.”