Asos shareholders have overwhelmingly approved a new executive pay scheme.
- The scheme, known as the ‘Value Creation Plan’ (VCP), received 91.92% support.
- The VCP will reward senior leaders based on substantial growth and value for shareholders.
- Shareholders also approved amendments to the Long Term Incentive Scheme 2022, with 99.18% in favour.
- The announcement initially impacted Asos’s share price, which briefly declined.
In a decisive move, Asos shareholders have shown strong backing for a new remuneration scheme aimed at incentivising senior executives. The scheme, known as the ‘Value Creation Plan’ (VCP), was endorsed by 91.92% of voting shareholders during the annual general meeting (AGM) held in London.
The VCP is designed to reward Asos’s senior leadership in cases where exceptional shareholder value is achieved through considerable business growth. One of the critical stipulations is that the share price must exceed £6.70 for recipients to benefit, approximately double the share price when the scheme’s design commenced.
At the same AGM, Asos shareholders overwhelmingly approved amendments to the previous year’s Long Term Incentive Scheme with a 99.18% majority. These amendments are intended to further align executive incentives with shareholder interests.
Despite the strong support for the VCP, the announcement had an immediate effect on the market, initially leading to a drop in Asos’s share price from £3.61 to £3.40 shortly after the initial announcement. This volatility reflects market reactions to changes in executive remuneration plans.
Overall, the new scheme sets the maximum annual executive bonus at 150% of the base salary, emphasising Asos’s commitment to attracting and retaining top talent by linking pay with performance.
The approval of the Value Creation Plan marks a significant endorsement of Asos’s strategy to align executive incentives with shareholder interests.
