THG could face shareholder revolt over CFO salary

By

Nigel TAYLOR

Published
Jun 5, 2023

THG is rarely out of the news and the latest report is that is the digital retail group could be facing a shareholder revolt at its annual general meeting later this month.

Investors are being urged to reject THG’s pay report because of an increase in its new CFO’s salary. Damian Sanders will earn £500,000 a year, which is 11% more than his predecessor John Gallemore, The Telegraph reported.

Influential shareholder advisory firm Glass Lewis said there’s no “compelling justification” given for the increase, which comes despite escalating losses and a declining share price.

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The investment advisory group has also urged investors to vote against the re-election of Iain McDonald, a proposal it put forward last year.

Glass Lewis claimed this was because he was an “affiliate or insider” on the pay committee. McDonald is a non-executive director at both THG and Boohoo.

The company’s valuation has sunk from around £6.5 billion in September 2020 to £813 million currently as the share price fell due to slow business progress at THG.

The upcoming annual general meeting comes after THG turned down a takeover bid from private equity firm Apollo. Its founder and chief executive Matthew Moulding’s said Apollo was trying to capitalise on the online retailer’s low share price.