Wednesday, May 24 2017 by

I would be interested to hear people's views on Boohoo's LTIP and directors remuneration in general. I have not fully studied the remuneration report but hope to do so before voting on the accounts.

I also see that the CFO has no "skin in the game". As far as I can see options are granted, received and cashed.

I would also be interested to hear people's views on Co-CEO's who have stock worth £383m and £90m respectively needing excessive pay and bonuses?

Thank you.

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way


As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.

Do you like this Post?
5 thumbs up
0 thumbs down
Share this post with friends

Boohoo Group PLC, formerly plc, is an online fashion retail group. The Company is based in the United Kingdom and has a presence in the United Kingdom, the United States, Europe and Australia, selling products to almost every country in the world. The Company owns the boohoo, boohooMAN, PrettyLittleThing, Nasty Gal, MissPap and Karen Millen and Coast brands. These brands design, source, market and sell clothing, shoes, accessories and beauty products targeted at 16-30 year old consumers in the United Kingdom and internationally. more »

LSE Price
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

  Is LON:BOO fundamentally strong or weak? Find out More »

4 Posts on this Thread show/hide all

Joy Woodstock 24th May '17 1 of 4

As I've held Boohoo for nearly a year now, and three-bagged my investment, I am imagining that the question you bring up Purpleski should be of interest to me - but I have to plead ignorance. I'd like to back up your question to see if others think its a question worth considering! I also wonder if you or someone else can show me how to tell how much 'skin in the game' the top directors hold... it is something I've yet to master, though no doubt it's blindingly obvious... thanks for your help!

| Link | Share | 1 reply
Ian4321 24th May '17 2 of 4

I was under the impression that the CEO still holds options over 2,027,395 ordinary shares, so I assume he still cares about the share price to some extent, even though he was probably granted the "skin" rather than paid for it. The Remuneration Committee is increasing the annual cash bonus payable to the CFO (the maximum will increase from 75% - of base salary - to 100%) and the joint CEOs (the maximum will increase from 75% to 200%) for 2018. This is in line with the committee's pay philosophy and the "interests of the executives are designed to align with the interests of shareholders through encouraging equity ownership and, in support of this, awards under the group's equity incentive plans are made where appropriate".
My view is that, in general, the remuneration of company executives is effectively out of the control of shareholders and the government is content with the situation staying that way. I wouldn't single out Boohoo in this regard.

| Link | Share
MikeBrenner 24th May '17 3 of 4

Whilst i don't like it, I can accept it with companies like BooHoo being driven by a founding team like mahmud and Carol as it has been shown in many other instances that when those folks leave the ship quite often things go off course. My bigger issue is where "professional managers" take massive pay, bonus and stock options just because they are working for a big company ... whose path is quite often set and trending without there meddling!

| Link | Share
purpleski 24th May '17 4 of 4

In reply to post #188219

Hi Joy

Yes I first bought November 2015 and have topped along the way but because it is 19.4% of my portfolio and the gain represents 1/3 of my unrealised gain I watch it very carefully.

I am not keen on these LTIP's but understand that directors need incentivising. But feel the co-ceo's should be incentivised enough by the increase in the share price and the commensurate increase in the value of their holdings should be sufficient motivation to grow the business. If they manage, for example, to grow the share price by 10% they are rewarded with an increase in their wealth of £38m and £9m respectively. For me that would be enough.

As for the CFO I can understand that he might need to be incentivised with share options but it would be nice to see him hold on to some and show faith in the company.

As to directors holdings I get these from but wish they were shown somewhere on Stockopedia but maybe this would be another database they would have to buy.

| Link | Share

Please subscribe to submit a comment

Stock Picking Tutorial Centre

Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis