The co-founders and chief executive of Boohoo received a £1m bonus despite the fast fashion giant’s losses swelling to almost £160m during its latest financial year. Co-founders Mahmud Kamani and Carol Kane have been handed the bumper pay packet alongside chief executive John Lyttle. The bonus was made up of £300,000 in cash and £700,000 in shares in the Manchester-headquartered group, which includes brands such as PrettyLittleThing and Debenhams.
Revealed in Boohoo’s annual report , the bonuses come after the group revealed losses of £159.9m as its revenue fell by 17 per cent. Boohoo also lost more than £90m in the prior financial year.
According to Boohoo’s own remuneration policy, the three executives are not eligible for a bonus because of the financial performance of the group. However, in the report, Boohoo’s remuneration committee said it “feels that the formulaic outcome is not an accurate reflection of the excellent work carried out during the year to set the business up for future success, nor will it ensure that the management team is motivated and retained throughout the next financial year which will be pivotal for the group’s long-term success”. As a result, the committee agreed to pay annual bonuses of 49.
1 per cent of the maximum to Lyttle and 67.1 per cent of maximum to Kamani and Kane. Kamani’s total pay for the financial year was £1.
50m while Kane’s was slightly higher at £1.52m. Lyttle’s total pay stood at £1.
7m. By comparison,.