boohoo withdraws AGM executive incentives resolution

Online fashion retailer boohoo (LON: BOO) has withdrawn resolution 3 from its AGM resolutions. Shareholders objected to the boohoo incentive plan. The share price is unchanged at 34.52p.

This follows engagement with certain shareholders and boohoo has “decided not to implement the incentive plan at this time”. The other resolutions remain unchanged.

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The plan was to replace an annual bonus and performance share plan with a single incentive plan. The reasons behind this are improved line of sight. That means setting one-year targets rather than longer-term targets. It should also have been simpler.

The chief executive Mahmud Kamani could have earned a performance payment of 300% of salary with two-thirds in cash and the rest in shares that will be released in two years. There is a time-based element which involves share incentives phased over three years. Last year the basic salary was £678,000.

Executive directors are waiving their entire bonus entitlement for the year to February 2024. Mahmud Kamani, Carol Kane and John Lyttle have each surrendered 1.93 million shares.

The Share Incentive Plan trust has 9.4 million shares available to issue to employees.

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