Boohoo is scrapping executive bonuses after a shareholder backlash

The pureplay fashion giant has scrapped plans to pay its top bosses £1m in bonuses as a result of backlash from shareholders amid ongoing losses at the retailer.

Boohoo said the executive directors have “waived their entire bonus entitlement” for the financial year to February 29, 2024, after discussions with “certain shareholders”.

Boohoo said it has withdrawn bonuses from the agenda of its upcoming annual general meeting, which is scheduled for June 20.

The business said in a statement to the London Stock Exchange that it has decided “not to implement the incentive plan at this time” and added that the company will consider “further engagement with shareholders on this matter in the future”.

This comes after The Times reported this weekend that Boohoo shareholders were “furious” about the bonuses being paid despite losses.

Co-founders Mahmud Kamani and Carol Kane, as well as chief executive John Lyttle, were set to be awarded the bumper bonuses as part of the group’s long-term incentive scheme, despite reportedly missing targets across sales, profits and cash flow as well as environmental and IT goals.

Boohoo recently recorded a loss before tax of £159.9m, increasing from £90.7m year on year, while gross profit dropped 16% to £756m and adjusted EBITDA declined 7% to £58.6m.

UK revenues also fell 16% year on year to £921m, which the group said reflected the “impact of the macro environment on consumer demand” as well as price investments and “the increase of Debenhams marketplace within the sales mix”.