Boohoo is facing a shareholder revolt over plans to pay its bosses bonuses despite pulling in substantial losses over the year.
The retailer faced criticism for setting out £1m payouts in its annual report as it failed to meet its financial targets.
Several of the business’s shareholders have planned to vote against its proposals to pay the bonuses to co-founders Carol Kane and Mahmud Kamani as well as CEO John Lyttle during its annual general meeting in June, according to The Sunday Times.
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The bonuses consist of £300,000 in cash as well as £700,000 in Boohoo shares.
Speaking to The Times, one of the fashion giant’s shareholders planning to vote against the payouts described them as “outrageous”.
They added: “I have never seen proposals for a new long-term scheme that hasn’t been discussed with shareholders.”
The news comes after Boohoo’s losses swelled to almost £160m earlier this month, as it encountered “difficult market conditions” caused by high levels of inflation and weakened consumer demand.
Sales were down 17% to £1.46bn in the year to February 29, which it said reflected its increased focus on profitability alongside the challenging market conditions.
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