Debenhams Group, formerly boohoo, could face more drama at its shareholder meeting tomorrow (Thursday 18 September) after two advisory groups urged investors to vote against the brand’s executive pay proposals.
Institutional Shareholder Services (ISS) and Glass Lewis advised that investors at the rebranded fashion retailer vote against the executive pay report later in the week, The Telegraph has reported.
ISS said Boohoo had not confirmed whether a bonus worth over £2m in cash and shares for CEO Dan Finley was granted on a like-for-like basis for forfeited awards in his previous position.
Additionally, ISS said it was concerned over other bonuses for executive directors.
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In its warning over the use of discretionary bonuses by Boohoo, Glass Lewis said it detected a “lack of resolve on the part of the board to put incentive awards truly at risk.”
It added: “Glass Lewis is generally sceptical of any type of extra bonus that rewards individuals for actions that we view as intrinsic to an executive’s duties, such as negotiating sales and acquisitions.”
A spokesman for the fashion retailer responded: “The renumeration committee sets our remuneration policy, aligning it with the need to attract and retain our leadership team, and deliver against the group’s multi-year turnaround strategy. We are pleased that both ISS and Glass Lewis supported all binding resolutions.
“We thank them for their comments on the advisory remuneration resolution, and we will continue to consider their recommendations as we determine our go forward policy.”
It wouldn’t be the first time boohoo (now Debenhams) shareholder meetings have featured fireworks. The company has been locked in an ongoing battle with majority shareholder Mike Ashley and his Frasers Group for around a year ever since he became the company’s biggest shareholder last October following a long campaign of gradual stake increases.
Last year’s Manchester AGM in December saw 66% of shareholders vote against Ashley’s proposal to remove executive chairman and founder Mahmud Kamani from the board and replace him with Ashley himself amidst a bitter feud and frantic letter writing spat between the two warring parties.
