Sep 17, 2018
New Boohoo boss promised £50m bonus for market cap growth
Boohoo.com has pledged to pay its incoming chief executive £50m if he can boost the online fashion retailer's stock market value by 180 per cent over five years. The fast-growing Aim-listed company, which specialises in cheap fashion such as £8 snake-print jumpsuits, has named Primark chief operating officer John Lyttle as its new CEO. Mr Lyttle has been promised a payout of £50m if Boohoo's market capitalisation rises 180 per cent over five years - from a current value of around £2bn to approximately £5.6bn. The clock starts ticking on the award from Monday even though Mr Lyttle does not take up his role until next March. Boohoo also said on Monday that the group's market capitalisation would have to increase by at least 60 per cent for Mr Lyttle to derive "Any value at all" from his performance plan. A Boohoo spokesperson said the plan had been "Agreed with major shareholders" of the company, whose largest investor is South African financial services group Old Mutual. Boohoo's joint CEOs and co-founders Mahmud Kamani and Carol Kane will both remain at the company after Mr Lyttle joins.
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