British online fashion retailer Boohoo (BOOH.L) is considering linking bosses’ multi-million-pound bonuses to Environmental Social and Governance (ESG) improvements, including workers’ rights, it said on Saturday.
The British parliament’s Environmental Audit Committee (EAC) recommended the move following an evidence session in December, attended virtually by Boohoo co-founder and chairman Mahmud Kamani and other executives.
At that session, Kamani told lawmakers he would fix the group’s supply chain failings.
In September, Boohoo accepted all the recommendations of an independent review which found major failings in its supply chain in England after newspaper allegations about working conditions and low pay and set out steps to tackle the problems.
Boohoo, which sells clothing, shoes, accessories and beauty products targeted at 16- to 40-year-olds, also faced investor criticism last year for the operation and timing of its new bonus scheme. The scheme would pay out up to 150 million pounds ($209 million) to its founders and top executives if Boohoo’s share price rose 66% over three years from June 2020.
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(Photo: REUTERS/Dado Ruvic/Illustration)