Despite Asos facing financial challenges, CEO José Antonio Ramos Calamonte received a significant pay rise.
- The CEO’s annual compensation increased by 43%, reaching £1.17 million this year.
- Asos reported a wider pre-tax loss, expanding from £296.7 million to £379.3 million.
- The company’s sales dropped by 18%, amounting to £2.9 billion.
- Calamonte remains optimistic about future performance improvements, citing strategic changes.
Throughout the year leading up to 1 September, Asos CEO José Antonio Ramos Calamonte’s compensation rose to £1.17 million, a notable increase from the previous year’s £814,858. This rise includes an annual salary of £716,436 and bonus payments totalling £376,801. Additionally, he benefited from £15,216 as part of a long-term incentive plan, soon to be replaced by a new value creation plan.
Despite this upward adjustment in personal earnings, the company experienced heightened financial strain, reporting a pre-tax loss that grew from £296.7 million to £379.3 million. The past year also saw a significant 18% drop in sales, bringing total revenue down to £2.9 billion.
In response to these financial hurdles, Calamonte has introduced a turnaround plan aimed at revitalising the company’s performance. He remains positive about the initial results, describing them as “green shoots in performance” as the company adheres to its newly devised strategies.
Asos has communicated its expectation of significant profit improvements in the coming fiscal year. This optimism is rooted in the company’s increased emphasis on full-price sales and strategic decisions to optimise order economics, which are anticipated to boost profitability despite variable revenue levels.
The significant pay rise for Asos’s CEO contrasts sharply with the company’s current financial losses, highlighting the complexities of executive compensation amidst broader business challenges.
