Asos Shareholders Back New Executive Pay Plan Amidst Turnaround Efforts
Shareholders of British online retailer Asos have voted in favour of a new executive pay plan, designed to align leadership incentives with the company's growth objectives. The "Value Creation Plan" (VCP), approved at a recent general meeting, aims to address concerns surrounding the company's performance and its efforts to turn around widening losses.
The VCP proposes amendments to Asos' existing long-term incentive plan, including changes to the dilution limits within its 2022 incentive scheme, deferred bonus plan, and sharesave plan. The plan will only deliver value to executives if the share price surpasses £6.70, a significant threshold considering the current share price of 365 pence.
The plan, which received 91.82% approval from shareholders, reflects the company's commitment to incentivising its leadership to drive long-term growth and profitability. Asos argues that the VCP will ensure executive directors and senior management are directly invested in achieving the company's ambitious targets.
This decision comes at a critical juncture for Asos, which is in the midst of a significant turnaround strategy. Earlier this year, CEO José Antonio Ramos Calamonte labelled FY24 as a "year of continued transformation" for the retailer, emphasizing the company's commitment to delivering a more profitable business model.
In Asos' latest financial report, Calamonte reiterated this message, stating: "Asos is becoming a faster and more agile business, and we are reiterating our guidance for the full year as we lay the foundations for sustainable profitable growth in FY25 and beyond."
The approval of the VCP underscores the confidence that shareholders have in the company's turnaround strategy and its leadership. The plan represents a crucial step in Asos' efforts to navigate the challenging retail environment and achieve its long-term growth goals.
