BOOHOO U-TURN AS FALLING SHARES PUT BONUSES OUT OF REACH

BOOHOO has performed an embarrassing U-turn on its executive pay policy after a dramatic fall in its share price left previous payouts out of reach.

The new bonus scheme leaves bosses in line to receive a maximum bonus of 200pc of their salary.

It replaces a policy unveiled during Boohoo’s meteoric pandemic-fuelled boom which could have netted co-founders Mahmud Kamani and Carol Kane up to £100m if its market value hit £7.55bn by next June.

A series of setbacks has seen the value of the fast fashion giant drop to just above £1bn.

Shares have been weighed down by a report in 2020 which found minimum wage violations and staff working in life threatening conditions in the supply chain.

In its annual report yesterday it unveiled a new bonus plan, which accepted that the management incentive plan may not pay out at the levels originally hoped for.

The new, more conventional bonuses, are based on sales and profits, but also consider factors such as Boohoo’s environmental, social and governance impact.