The Boohoo Group has announced its executive directors have “opted to waive their entire bonus entitlement” for the financial year ended 29 February 2024.

The news comes before shareholders were due to vote on whether or not to approve the remuneration plan following Boohoo’s annual report, which was published on 23 May 2024.

The executive directors include co-founders Mahmud Kamani and Carol Kane as well as current CEO John Lyttle. All three were due to receive a £1m bonus – 70% of which was to be paid in shares and the remaining £300,000 in cash.

Despite missing targets on sales, profits, cashflow, delivery on ESG targets, supply chain milestones and delivery of an IT project, Boohoo’s remuneration committee felt the “formulaic outcome” of the annual bonus calculator was “not an accurate reflection of the excellent work carried out during the year to set the business up for future success”.

The committee added that the planned bonuses would “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”.

However, on 28 May Boohoo Group announced that its executive directors had “opted to waive their entire bonus entitlement” for FY24 ahead of a vote on the plans.

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Boohoo said it had “engaged with certain shareholders” after announcing the plans and had decided not to implement the plan “at this time”.

Boohoo told Just Style it had no comment at the time of going to press.

In May 2024, Boohoo reported a 17% drop in group revenue for FY24. Group revenue fell to £1.46bn ($1.82bn) in the 12 months ended 29 February 2024, compared to £1.77bn the year before.

At the time, CEO Lyttle said the group had made progress, despite the difficult market conditions, and said the company was taking action to return to profitable growth.

In January 2024, Boohoo defended itself against claims it had been labelling goods produced overseas as ‘Made in the UK’, with a spokesperson telling Just Style it was an “isolated incident”.