Asos has changed the criteria for its annual executive bonus scheme in a move that analysts said reflected the sharply declining fortunes of online fashion retailers. The weighting for revenue in the current year has been cut from the 30 per cent cited in the company’s annual report, published three weeks ago, to 15 per cent. Adjusted pre-tax profit has been downgraded from a 30 per cent weighting to 25 per cent while adjusted cash flow now comprises a 35 per cent weighting, up from 15.
Prominent hedge funds from both sides of the Atlantic have gone into battle with Mike Ashley over his stake in Asos by increasing bets against the fast-fashion retailer.
By Scott Kanowsky