Fast fashion e-tailer Asos has altered the criteria for its annual executive bonus scheme to reflect its sharp decline in finances.
In a notice on its website, the retailer said the changes were “appropriate” in order to “better align with business priorities”.
According to the Financial Times, the new scheme will be applicable to Asos’ new CEO José Antonio Ramos Calamonte, who joined the company in June. It will also affect the next appointed CFO.
The publication said the scheme can pay out a maximum of 150 percent of the base salary depending on performance targets in a single financial year.
The weighting for revenue in the current year has been cut from the 30 percent, initially stated in its annual report, to 15 percent, while its pre-tax profit has been adjusted from 30 to 25 percent.
The move comes as Calamonte looks to cut costs across the company through the adoption of a new, more flexible commercial model.
Asos posted a reported loss of 31.9 million pounds on sales, just a one percent increase to 3.94 billion pounds in the year to August 31, 2022.
The retailer recently confirmed plans to cut its workforce in a decision it said would affect all parts of the company.
It also announced a 100 million pound stock-write off, while also agreeing to a 650 million pound credit facility.