British fast fashion group Boohoo has announced that it has awarded over 17 million shares to a total of 46 employees as part of its ongoing Discretionary Share Award Plan. A total of 17,112,212 shares of common stock were offered at one pence (one cent) each. This corresponds to a total of 171,122.12 pounds (around 200,000 euros). The shares represent 1.35 percent of the Company’s currently issued share capital and have a three-year vesting period ending June 28, 2026, provided employment continues at the time of the vesting period.
Boohoo pointed out that none of the executives were involved in the awards.
The move comes amid the ongoing dispute between Boohoo and Revolution Beauty, a cosmetics company in which Boohoo owns 26.6 percent, making it the company’s largest shareholder.
In the recent public spat between the two companies, Boohoo criticized Revolution’s decision to issue a total of two million shares to a group of company executives.
The fashion giant claimed Revolution failed to notify shareholders of the decision and requested public confirmation that the terms of the stock awards had not been changed after the last AGM, where said executives were reappointed despite Boohoo’s objections.
In response, Revolution explained that 17 people had received the awards to reward “hard work and dedication” and also highlighted Boohoo’s highly controversial £175m growth stock plan, which had been rejected by 37% of shareholders .
This translated and edited post previously appeared on FashionUnited.com.