Boohoo is facing a shareholder revolt at its upcoming AGM this week as tension brews over hefty bonuses handed to executives.
The Manchester-based fast-fashion business‘s share price fall 2.13 per cent this morning, after Institutional Shareholder Services (ISS) asked investors to oppose the pay report following a decision to hike bonuses.
“tThere is no compelling rationale for this adjustment, taking into account overall performance,’ ISS said, according to reports in This is Money, after the group’s boss was rewarded with a £650k bonus despite the group posting a £90m loss during the year.
Boohoo has been struggling in recent months as the reopening of traditional stores and economic uncertainty damaged sales.
A separate investor, Glass Lewis, also raised alarms over new chief financial officer Shaun McCabe having a “significantly higher” salary than former CFO Neil Catto.
The two separate advisory groups, also recently raised concerns about e-commerce platform THG calling for investors to vote against the re-election of Ian McDonald at the firm’s AGM on June 21,
ISS and Glass Lewis are reportedly concerned about McDonald, who joined the THG board in 2010, due to his position as founder of Belerion Capital, which last year helped manager King Street Capital on an unsuccessful takeover bid for THG.
City A.M has contacted Boohoo, Glass Lewis and ISS for a comment.