Boohoo plans to implement new incentive scheme paying out maximum £150 million

Boohoo intends to initiate a new management incentive plan that could see up to £150 million paid out to its senior executives if they deliver two-thirds share price growth over the next three years.

The announcement states the plan will run over three years to June 2023 and would deliver a maximum payout if the value of the company rises 66% to a market capitalisation of £7.55 billion compared with £4.54 billion at the start of the scheme.

The primary beneficiaries will be co-founders Mahmud Kamani and Carol Kane who each receive 33.3% and Neil Catto, CFO, with 6.67%. Amir Kamani who is presently CEO of the BoohooMan division receives 16.67% with the statement revealing he has “been identified by the group CEO [John Lyttle] to take on a wider group role across other brands and as a key figure in the future leadership team of the wider group”.

According to the statement: “The primary objective of the plan is to motivate key members of the management team to continue to achieve exceptional levels of performance across the group and deliver further returns for its shareholders.”

This relates specifically to delivering on the group’s vision of building a scaleable multi-brand fashion eCommerce platform. Evidence of the direction of travel was seen with the recent purchase of the Oasis and Warehouse brands that are being integrated within the Boohoo infrastructure.