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PRIVACY
Retail & Consumer

Boohoo faces shareholder backlash over executive pay

Investors will hope that the company, involved in a controversial buyout and hit by a short-seller's report, can exert an aura of calm as in its trading update on Wednesday

Boohoo advert(Image: MDM)

There will perhaps be little actual detail as Boohoo updates shareholders on how it did in the fist quarter, but eyes are likely to be fixed on the online retailer after weeks of turbulent news.

Investors will hope that the company, involved in a controversial buyout and hit by a short-seller's report, can exert an aura of calm as in its trading update on Wednesday.

It is also facing a potential shareholder revolt over a payout to boss John Lyttle and salary increases for some of its top executives.

Advisory group ISS has told investors to vote against Boohoo’s pay policy at its AGM, according to  The Sunday Times , after claiming that there was a lack of explanation for the fashion etailer’s £1m payment to Lyttle or for hefty pay increases of between 18% and 30% to other directors.

Boohoo insists the award to Lyttle, which came after he joined from Primark, was to compensate him for payments he forfeited when quitting the high street giant.

Boohoo said that payment, and the reasoning for it, were both disclosed to the stock market back in July last year.

In March, just before the º£½ÇÊÓÆµ economy shut down, nervous shareholders sent Boohoo's shares tumbling to only a little over half the value of where they were trading in February.

But investors that stuck with the company, or bought in at a low of 157.5p were rewarded soon after lockdown, as the company ticked back up to as high as 390p per share.