Boohoo could face a backlash at its shareholder meeting on Thursday (18 September), after two advisory groups urged investors to vote against the brand’s executive pay proposal.
Institutional Shareholder Services (ISS) and Glass Lewis advised that investors at the fashion retailer, which has rebranded as Debenhams Group vote against the executive pay report later in the week, The Telegraph reported.
ISS said Boohoo had not confirmed whether a bonus worth over £2m in cash and shares for CEO Dan Finley was granted on a like-for-like basis for forfeited awards in his previous position.
Additionally, ISS said it was concerned over other bonuses for executive directors.
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Warning over the use of discretionary bonuses by Boohoo, Glass Lewis said it “indicated a lack of resolve on the part of the board to put incentive awards truly at risk”.
It added: “Glass Lewis is generally sceptical of any type of extra bonus that rewards individuals for actions that we view as intrinsic to an executive’s duties, such as negotiating sales and acquisitions.”
A spokesman for the fashion retailer said: “The renumeration committee sets our remuneration policy, aligning it with the need to attract and retain our leadership team, and deliver against the group’s multi-year turnaround strategy. We are pleased that both ISS and Glass Lewis supported all binding resolutions.
“We thank them for their comments on the advisory remuneration resolution, and we will continue to consider their recommendations as we determine our go forward policy.”
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