Boohoo's shareholders have voiced their displeasure at its new £175m bonus plan after a vote to approve it saw significant opposition. As announced last month, the new plan will see bonuses handed out over a period of time if Boohoo's market capitalisation reaches £5 bn. After a general meeting held on March 8, a vote to approve the new plan was passed by just over 62% to 37%.
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".
At the time, Boohoo's market capitalisation stood at £591.67mn after its shares closed at 46.65p each on February 15. That was a rise of more than 33% so far this year but from a historic low of 33.89p reached on December 28, 2022.