THG will face a shareholder dispute over the “unjustified” salary of new chief financial officer Damian Sanders at its annual general meeting later this month.
The online retailer, which owns brands including Myprotein and Lookfantastic, found itself in trouble after shareholder advisory firm Glass Lewis recommended investors reject two proposals being voted on due to the pay rise of Sanders, The Telegraph reported.
Glass Lewis told the newspaper that shareholders were given “no compelling justification” over the pay rise at a time when losses had deepened and share prices had declined.
Sanders took over as chief financial officer earlier this year and is set to take home £500,000 a year – 11% more than his predecessor John Gallemore.
The news comes after THG reported a widened operating loss of £495.6m in the year ending December 2022, due to costs relating to a strategic review, stock provision, international delivery and administration.
THG’s operating loss in 2021 was £137.5m.
The news follows THG’s termination of all discussions about a possible takeover with private equity firm Apollo Global Management, claiming there was “no longer any merit in continuing to engage”.
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