// Boohoo Group defends £1m executive payout for CEO John Lyttle
// Executive directors also to be given pay rises of up to 30%
// Advisory group ISS has told investors to vote against Boohoo’s remuneration policy at its AGM
Boohoo’s boardroom is set to face the music this week amid reports that a shareholder revolt may occur over a payout to chief executive John Lyttle and some executive pay rises.
According to The Sunday Times, advisory group ISS has told investors to vote against Boohoo’s remuneration policy at its AGM.
The online retailer is set to award a £1.04 million payout to Lyttle and salary increases from 18 per cent to 30 per cent for other senior executives.
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Lyttle is also in line for a £50 million share award if he can take Boohoo’s market cap beyond £6 billion by March 2024. Its current market cap is £4.5 billion.
ISS argued there was a lack of explanation behind these pay packages.
Boohoo said Lyttle’s salary was to compensate him for payments he forfeited when he Primark last year to join as chief executive.
The company added that the payment and the reasoning for it were both disclosed to the stock market in July last year, and that the other directors’ salary increases were made after benchmarking Boohoo against retailers of a similar size.
Boohoo is now one of the biggest companies on AIM, but the AIM is more lightly regulated than the London Stock Exchange.