Boohoo grants 8m+ shares to top execs and directors

Boohoo Group has announced the grant of options over 8,293,104 ordinary shares at £0.01 to its top executives, Dan Finley and Stephen Morana, as part of their compensation and appointment agreements.

Additionally, the company issued 275,864 shares to its non-executive directors as part of their compensation package. Boohoo said the actions are part of its strategy to align management incentives with company performance, enhancing its operational and strategic positioning. The issuance of new shares will not dilute existing shareholders’ interests, maintaining the company’s focus on sustainable growth.

READ MORE: Boohoo shareholders reject Frasers takeover attempts for a second time

Nil cost options over 1,000,000 Shares were granted to Finley pursuant to the company’s Discretionary Share Award Plan, equating to 0.07% of the issued share capital.

This award forms part of his remuneration as chief executive of Debenhams prior to his appointment as group CEO on November 1, 2024. The options vest in three tranches in June 2025, 2026, and 2027.

In addition, nil cost options over 3,793,104 shares were granted today to Finley and 3,500,000 to Morana, equating to 0.52 % of the issued share capital.

READ MORE: Why Harrison Ford said yes to ‘unconventional’ TV ad – and what Hollywood star refused to do

These awards form part of the terms and conditions of their appointments as group CEO and group CFO.

Finley’s award becomes exercisable immediately. Morana’s award, which was conditional on continued employment 12 months after his appointment as group CFO on February 19, 2024, vests and becomes exercisable on February 19, 2025.

The awards will be satisfied by the company’s Employee Benefit Trust and there is no dilutive impact on shareholders.

A total of 275,864 New Ordinary Shares were also issued at an effective price of 29.00 pence under the terms of the non-executive directors’ letter of appointment, which requires compensation to be made partly in cash and partly in Ordinary Shares.

Non-executive directors Iain McDonald, Tim Morris and Alistair McGeorge each received shares worth £20,000, while Kirst Britz and John Goold received £10,000-worth of shares each. These shares represent compensation due for the financial year ending February 28, 2025, and are subject to lock in provisions for as long as the recipient remains a director of boohoo.

Boohoo, which operates brands including boohoo, boohooMAN, PrettyLittleThing, Karen Millen, and Debenhams, has recently fought off repeated attempts at a boardroom takeover by largest shareholder Frasers Group, whose founder Mike Ashleigh has been a vocal critic of the fast fashion house’s existing leadership.

Subscribe to the Prolific North Daily Newsletter Today!

Want all the latest content from Prolific North delivered direct to your inbox daily? Of course you do!

Related News

Sign up to the Prolific North Daily Newsletter

Keep up with the latest developments in the creative, digital, tech, media, and marketing industries in the North