Asos could face investor rebellion over executive pay

Asos, which has experienced a challenging year tainted by falling consumer confidence and supply chain disruptions, could be about to face a conflict with shareholders over executive pay.

Shareholder advisory service Pirc has recommended investors reject or abstain on more than a third of the 15 motions at the retailer’s upcoming shareholder meeting on January 11, according to a report seen by This is Money.

One concern is that Mat Dunn, the company’s CFO who stepped in as CEO on an interim basis following the departure of Nick Beighton in 2021, is set to receive a salary of 567,000 pounds despite the company’s woes.

Pirc also described current CEO Jose Ramos’ total potential payout of up to 4.2 million pounds as “excessive”, and recommended shareholders abstain on the re-election of chair Jorgen Lindemann.

However, another shareholder adviser, ISS, recommended investors back the retailer’s pay policy, but still added it “raises concerns”.

An Asos spokesman told This is Money that pay policies encourage strong performance from the leadership team.

Asos has faced a difficult year as falling consumer confidence and supply chain disruptions have hit its top- and bottom lines.

In the year to August 31, the company swung to a pre-tax loss of 31.9 million pounds from a profit of 177.1 million pounds a year earlier.

A November report by Retail Week claimed Asos was planning to cut over 100 jobs as part of a restructuring plan.