Online fashion retailer Boohoo has drastically altered its bonus plan for senior executives after its share price crashed. The Manchester-based firm said there was "little or no value" in its existing incentive plans.
The changes come as its market capitalisation fell drastically. At the time of writing Boohoo's share price stands at 54.7p per share, down from a high of 413p in June 2020. Boohoo's market capitalisation stands at £591.67m, according to BusinessLive.
The company said its Growth Share Plan and Management Incentive Plan can "no longer operate as an effective incentive mechanism for this critical population who are responsible for driving business performance and delivering boohoo's strategic objectives". Under the new plan, £175m would be handed out to senior management over a period of time but only if the company's market capitalisation reaches £5bn.
