* Boohoo has been criticised over supply chain issues
* Investor advisory groups had opposed Carol Kane’s
* Boohoo pay report opposed by 20.2% of votes cast
LONDON, June 18 (Reuters) – Some 12% of votes cast at
Boohoo’s annual shareholders’ meeting on Friday opposed
the re-election to the board of the British online fashion
retailers’ co-founder and executive director Carol Kane.
Ahead of the meeting, investor advisory groups Glass Lewis
and Institutional Shareholder Services (ISS) had recommended
shareholders vote against her re-election because of concerns
over how Boohoo dealt with worker conditions in its supply chain
and over executive pay.
Boohoo, which sells clothing, shoes, accessories and beauty
products targeted at 16- to 40-year-olds, said 11.96% of votes
cast at its annual general meeting (AGM) were against the
resolution to re-elect Kane, while 88.04% were in favour.
“The board is delighted that shareholders have recognised
the important and very specific role Carol has on the board with
a very strong vote in her favour,” Boohoo said.
Boohoo’s other co-founder Mahmud Kamani did not face a vote
on his re-election this year.
In September, Boohoo accepted all the recommendations of an
independent review that found major failings in its supply chain
in England after newspaper allegations about working conditions
and low pay in factories in the Leicester area.
The group pledged to fix the problems with its ‘Agenda for
On Tuesday, Boohoo said the programme had made “excellent
progress”. It said it was on track to publish a global supplier
list in September and continued to review its manufacturing
Boohoo has also faced investor criticism over a bonus scheme
which would pay up to 150 million pounds ($207.4 million) to its
founders and executives if its share price rises 66% over three
years from June 2020.
A separate bonus scheme for CEO John Lyttle could net him 50
million pounds if Boohoo’s market value reaches 6 billion pounds
At the AGM 20.2% of votes cast opposed Boohoo’s pay report,
an improvement on last year’s 34.08% vote against.
“The remuneration committee looks forward to ongoing
engagement with the group’s shareholders as it continues to
shape the group’s future remuneration policy,” Boohoo said.
($1 = 0.7234 pounds)
(Reporting by James Davey; editing by Michael Holden and Louise