Boohoo bosses – including the chairman’s son – could bag a £150m bonus under an incentive scheme it plans to push through.
The fast-fashion retailer said it wants to ‘ensure that the group’s leadership team is motivated’ by allowing them to claim huge rewards if the shares continue to rise. As long as the shares climb by two thirds over the next three years, three of Boohoo’s executive directors and a handful of the senior management team will pocket shares worth £150m.
Boohoo, which owns Karen Millen, Nasty Gal and Pretty Little Thing, said it plans to implement the new policy without putting it to a shareholder vote.
In vogue: The fast-fashion retailer said it wants to ‘ensure that the group’s leadership team is motivated’
The biggest beneficiaries under the scheme will be Mahmud Kamani, Boohoo’s co-founder and executive chairman, and Carol Kane, its co-founder and executive director.
They will each be eligible for a third of the £150m bonus.
Boohoo said they had never received long-term incentives before, but even without these rewards Kamani and Kane each took home £1.1m last year.
In a move likely to raise eyebrows, Kamani’s son Samir – boss of Boohoo’s own-brand menswear line – will also be entitled to 16.7 per cent of the bonus pool, or up to £25m.
And Neil Catto, the chief financial officer, will be eligible for 6.7 per cent.
He already bagged a long-term incentive worth £705,000 last year as part of his £1.2m pay package.