Boohoo is facing a major shareholder revolt over bonuses paid to its bosses.
More than 40% of investors voted against the fashion retailer’s renumeration policy on Friday (19 September).
The news follows advisory groups Institutional Shareholder Services (ISS) and Glass Lewis advising shareholders to vote against the policy last week.
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.
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Glass Lewis criticised the brand for paying executive bonuses irrespective of performance.
Defending its pay packages on Friday, a spokesman for Boohoo 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.”
The group said the majority of its shareholders had backed the proposal, apart from Frasers Group.
Additionally, nearly 40% of shareholders voted against a series of other proposals, such as re-electing the brand’s CEO and chairman.
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