Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

RetailLatest NewsBonusesCorporate governanceCompensation

Boohoo may link bosses’ bonuses to ESG improvements

by Ashleigh Webber 27 Apr 2021
by Ashleigh Webber 27 Apr 2021 Chris Batson / Alamy Stock Photo
Chris Batson / Alamy Stock Photo

Online fashion retailer Boohoo could link executive bonuses to environmental, social and governance (ESG) goals, including workers’ rights improvements.

The company’s chairman, Mahmud Kamani, told the government’s environmental audit committee (EAC) that it was considering taking forward the committee’s recommendation to align bosses’ remuneration with ESG improvements, in order to demonstrate its commitment to environmental and social responsibility.

Bonuses

Contract clause on production-based bonuses

How to implement and manage a discretionary bonus scheme

The group came under fire from MPs last year following reports of poor working conditions and mistreatment of workers in its supply chain – including at factories in Leicester.

In September 2020, a report compiled by Alison Levitt QC, who had been commissioned by Boohoo to review working practices in its supply chain, confirmed that staff in garment factories were paid below the minimum wage and faced pandemic-related health risks at work.

EAC chairman Philip Dunne said: “Boohoo’s response to our committee’s letter sends promising signals that we are reaching a turning point in fast fashion’s awareness of its environmental and social responsibilities.

“It is welcome news that the board is considering aligning senior executive bonuses with making ESG improvements, and I look forward to hearing whether this is being taken forward.

“Bonuses shouldn’t just be linked to breakneck growth. Boohoo needs to demonstrate that it is delivering verifiable improvements in workers’ rights and the climate impact of its products.

“News last summer emanating from Leicester’s garment industry appalled us all, with allegations of modern slavery in supply chains and a lack of Covid-secure measures in factories. This spotlight on Leicester may have encouraged Boohoo to take steps to clean up its supply chain.

“Once the publicity dies down, I hope these changes remain in place for years to come with a renewed pride in ‘Made in Britain’ items and certainty on improved workers’ rights.”

Bonuses shouldn’t just be linked to breakneck growth. Boohoo needs to demonstrate that it is delivering verifiable improvements in workers’ rights and the climate impact of its products” – Philip Dunne MP

Over the weekend the committee published a letter it had received from Kamani, dated 23 March, which said: “With regards to the committee’s suggestion that we link our senior executive remuneration incentives to environmental, social and governance (ESG) improvements, I can confirm that this matter is being considered by our board.

“Our remuneration committee is looking at the details of how this might work in practice and have engaged specialist consultants to help us with this. Our annual remuneration report will be published in May and will include a further update on this matter.”

A Boohoo spokesperson said: “As we stated in our response to Mr Dunne, the Board are discussing this matter and have shared the Group’s proposed approach with a number of our shareholders, who have given constructive feedback on our plans to date.”

According to Reuters, Kamani and co-founder Carol Kane could each be in line for a £50m bonus; Kamani’s son Samir, who is CEO of BoohooMan, receives £25m; and finance chief Neil Catto could see a bonus of £10m.

Implementing an ESG-linked bonus scheme would improve Boohoo’s ethical credentials, said Natalie McEvoy, counsel at reputation management law firm, Slateford.

“This will also likely push others in the industry to link sustainability to remuneration in order to send a message that it is a priority to the company and to expect individuals to just ‘get it done’.

“Looking at the broader marketplace, there is definitely a drive towards sustainability as the right and proper way to run a business, even if small concessions to the bottom line are taken as a necessary price to pay, particularly with regard to the drive towards eliminating carbon emissions and ethical provenance of goods.

“Ethical metrics have been set out by business leaders in Davos and include many measurable targets from investing into local source areas, to ensuring the proper treatment of workers, and many milestone markers between.”

Compensation and benefits opportunities on Personnel Today

Browse more compensation and benefits jobs

Ashleigh Webber
Ashleigh Webber

Ashleigh is editor at OHW+ and part of the Personnel Today editorial team. Prior to joining Personnel Today in 2018, she covered the road transport sector for Commercial Motor and Motor Transport.

previous post
Two in five employers not addressing presenteeism
next post
Three in 10 union reps report Covid-19 safety inspections

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

EasyJet joins battle for cabin crew with £1,000...

16 May 2022

Firms with female directors most likely to cut...

19 Apr 2022

British Airways offers new cabin crew £1,000 bonus

14 Apr 2022

Cost of living continues to outpace wage growth

15 Mar 2022

John Lewis Partnership restores staff bonus

10 Mar 2022

FCA’s new pay offer a ‘grave error’, claims...

2 Mar 2022

Senior executives: towards a new world of work?

15 Feb 2022

Financial Conduct Authority faces strike threat over pay...

25 Jan 2022

What’s driving the upward pressure on pay?

18 Jan 2022

Top CEOs’ UK pay overtook average workers’ salary...

7 Jan 2022
  • Apprenticeships are the solution to your recruitment problems PROMOTED | Apprenticeships have the pulling power...Read more
  • What it really means to be mentally fit PROMOTED | What is mental fitness...Read more
  • How music can help to ease anxiety at work PROMOTED | A lot has happened since March 2020, hasn’t it?...Read more
  • Why now is the time to plug the unhealthy gap PROMOTED | We’ve all heard the term ‘health is wealth’...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+