Asos reportedly scraps diversity bonuses for directors

E-commerce giant Asos is understood to have shelved diversity targets as part of its directors bonus scheme as pressure to hit financial ambitions mounts amid an ongoing sales slump.

It is this mission that the annual executive bonus will now be primarily based around, according to The Telegraph, which initially reported the news, as well as upping the company’s share price and profit margins.

Prior to this, 25 percent of Asos’ bonuses had been based on environmental, social and governance (ESG) strategies, compared to 25 percent on adjusted pre-tax profit, 35 percent on adjusted free cash flow and 15 percent on revenue.

Now, for the ongoing financial year, the bonus will be based 75 percent on adjusted EBITDA, while the latter 25 percent will centre around adjusted gross margin and closing stock, among other related elements.

Asos reported an almost 300 million pound loss in the full year to September 3, 2023, as part of its financial results published earlier this month, with sales also taking an 11 percent hit.

ESG will continue to be addressed via the company’s ESG Committee, established by the board and formed of three independent non-executive directors who have been tasked with the likes of defining the group’s ESG strategy, overseeing related practices and monitoring legal and regulatory compliance.