// Boohoo shareholders controversial plan to hand executives £175m if share price improves
// Two previous plans had failed after Boohoo’s share price dropped
Boohoo had faced a shareholder backlash over its plans to hand executives £175 million if its share price improves, although the scheme was narrowly approved.
The fast fashion retailer‘s “growth share plan” has proved controversial to investors, with 37% of shareholders voting to reject it on Wednesday.
Boohoo is set to go ahead with its plans, which make it the third bonus plan to be rolled out in four years.
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Two previous plans had failed after Boohoo’s share price dropped.
The latest plans could mean Boohoo boss John Lyttle would pocket £50 million, while finance boss Shaun McCabe receives £25 million and co-founder Carol Kane £20 million.
Samir Kamani, who runs the firm’s Boohoo Man brand and is the youngest son of Kane’s co-founder Mahmud Kamani, could receive £12.5 million.
The rest of the £175 million pot would go to staff across the business.
Boohoo bosses will have to bring its share price back up and hit a series of targets over the next five years in order to receive the huge payouts.
Mahmud Kamani said: “As Boohoo’s largest shareholder I wholeheartedly endorsed the Growth Plan, recognising the importance of aligning the interests of all shareholders with those of our hardworking Boohoo colleagues.
“The value generated for shareholders would be some 25 times greater than the maximum award of the Plan, and I am therefore pleased that it is being implemented.”
Chairman of Boohoo’s remuneration committee Iain McDonald said tjhe growth plan is designed to “rebuild substantial shareholder value through the delivery of extremely ambitious targets”.
He added: “It acts as a powerful retention, recruitment and incentivisation tool for all participants, resolutely aligning their interests with those of our shareholders.”
