💰 CEO Pay Boost Despite Losses
Asos CEO José Antonio Ramos Calamonte received a 43% salary increase, reaching $1.5M in FY2024. This included a $900K base salary and bonuses of $475K. A $20K long-term incentive from 2023 will soon be replaced by a new value creation plan. The CEO’s pay hike has drawn attention, given the company's struggles, but Asos defends the package, citing alignment with industry standards and strategic goals.
📉 Sales Slump and Losses Deepen
Asos reported a pre-tax loss of $481M, up from $376M last year, as sales fell 18% to $3.7B. The company has faced persistent challenges, including reduced consumer spending and supply chain pressures. Despite these issues, Asos notes adjusted EBITDA turned positive, with improved cash flow. This aligns with the CEO’s ongoing turnaround strategy for better financial health.
🌱 Green Shoots of Recovery
José Antonio Ramos Calamonte stated the company is seeing “green shoots” of progress. Asos has cut excess inventory and improved product quality, claiming the strongest product position in years. Efforts also include rolling out a loyalty program to drive engagement. These moves aim to regain market confidence, though results remain mixed.
🛍️ Strategic Overhaul Underway
Asos continues its transformation, focusing on profitability and efficiency. A company spokesperson highlighted improved free cash flow and streamlined operations as key wins this year. However, the significant loss underscores the challenging market conditions. Future strategies, including loyalty programs and operational shifts, are expected to support recovery.
Should a CEO get a raise despite losses?
