Boohoo’s executive team’s multi-million dollar bonuses might soon be linked to their Environmental Social and Governance (ESG) efforts, which include making improvements to workers’ rights.
Kamani and co-founder Carol Kane are both estimated to be potentially in line for bonuses worth £50 million. Kamani’s son Samir, who serves as the chief executive of BoohooMan, is estimated to be in line for a potential £25 million in bonus, while the company’s finance chief Neil Catto could earn as much as £10 million.
British parliament’s Environmental Audit Committee (EAC) recommended the move after an evidence session in December last year, which was attended virtually by the company’s co-founder and chairman Mahmud Kamani. In the session, Kamani had said he would be fixing the company’s supply chain issues.
“Further details of the approach will be included in the group’s annual report which will be published in May,” a Boohoo spokesperson told Reuters.
The company’s board is now devising new approaches to handle these issues and course correct its labor rights and worker safety record.
The fast-fashion brand came under scrutiny last year after reports surfaced that showed that its suppliers were paying their factory workers less than minimum wage while failing to offer any sort of protection from contracting the coronavirus.
“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,” he said.
“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.”