Welcome news : Fashion retailer Boohoo to link executive pay to sustainability goals
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The fashion retailer s brands include Oasis, Burton, Dorothy Perkins and Debenhams | Credit: Boohoo
Online and high street clothing brand bows to pressure from shareholders and MPs after criticism of its environmental and labour practices
Fashion retailer Boohoo has bowed to pressure from shareholders and MPs to enhance its sustainability efforts, this week announcing plans to link the pay of its executive team to the achievement of its environmental, social, and governance (ESG) targets.
Boohoo has enjoyed a meteoric rise to become one of the biggest online and high street fashion retailers in the UK, buoyed by annual sales growth of between 50 to 100 per cent in recent years, with its executives benefitting from multi-million pound bonus schemes as a result.
The online retailer faced criticism from investors last year over its long-term incentive scheme, which could see founders and directors paid up to £150million.
Boohoo has said it will link multimillion-pound bonuses for its directors with improvements in its supply chain following allegations of poor working conditions and corporate governance.
The online retailer faced criticism from investors last year over its long-term incentive scheme, which could see founders and directors paid up to £150 million.
Boohoo has said it will now link long-term bonuses to the implementation of its Agenda For Change programme after pressure from Parliament’s Environmental Audit Committee.
The group’s annual report also revealed that total executive pay had slipped as Boohoo’s chief secured a lower pay packet for the past financial year.
Boohoo to link £150m bonus pot for directors to supply chain improvements
(Getty Images for boohoo.com)
Boohoo plans to link multimillion-pound bonuses for its directors with improvements in its supply chain following allegations of poor working conditions and corporate governance.
The online retailer faced criticism from investors last year over its long-term incentive scheme, which could see founders and directors paid up to £150m.
Executive pay
The group’s annual report revealed that total executive pay had slipped as Boohoo’s chief secured a lower pay packet for the past financial year.
It said that the total pay packet for executive directors fell by 17.6 per cent to £5.41m for the year to February, compared with £6.5m in the previous financial year.
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