José Antonio Ramos Calamonte, Asos CEO, experiences a 43% pay increase.
- Despite the pay rise, Asos reports substantial pre-tax losses.
- The company’s sales have dropped significantly by 18%.
- Calamonte emphasizes emerging positive changes within Asos.
- The pay and bonuses align with industry benchmarks.
José Antonio Ramos Calamonte, the CEO of Asos, has received a notable 43% salary increase this year, totaling £1.17 million, up from £814,858 in 2023. This increase comes amidst the company facing substantial financial challenges. Asos reported a widening of pre-tax losses from £296.7 million to £379.3 million as of the year ending September 1. This financial setback is coupled with a decrease in sales by 18%, resulting in total sales of £2.9 billion.
Calamonte’s annual compensation consisted of a base salary of £716,436, augmented by bonus payments of £376,801. These included an annual bonus of £361,585 and £15,216 from a long-term incentive plan. This incentive plan is set to be replaced by a new value creation plan (VCP) for the current fiscal year.
In response to the financial challenges, Calamonte has been instrumental in leading a strategic turnaround plan. Despite current losses, he highlights ‘green shoots in performance,’ indicating potential for recovery and growth as the company implements its new strategy. An Asos spokesperson reinforced Calamonte’s position, stating that all employee remuneration, including bonuses, is board-approved and based on strategic objectives crucial to the business.
According to the spokesperson, Asos has made significant strides in business transformation over the last year, crediting the improvements in product positioning and profitability. This has resulted in a positive adjusted EBITDA and a significant enhancement in free cash flow.
The situation at Asos illustrates the challenges and optimism accompanying its financial recovery efforts.
