Asos CEO José Antonio Ramos Calamonte’s salary increased by 43% despite the company’s losses nearing £380 million, drawing attention and scrutiny.
- In the past year, Calamonte received £1.17 million, a significant rise from his previous pay, as revealed in Asos’ annual report.
- The company’s financial performance has been challenging, with pre-tax losses increasing from £296.7 million to £379.3 million.
- Despite these losses, an Asos spokesperson highlighted progress in transforming the business and achieving strategically important objectives.
- Calamonte expressed optimism, noting improvements and ‘green shoots in performance’ as a result of the company’s new strategy.
José Antonio Ramos Calamonte, the CEO of Asos, has seen his pay rise by 43% this year, bringing his total earnings to £1.17 million for the year ending 1 September. This substantial increase from the previous year’s £814,858, as disclosed in Asos’ annual report, comes at a time when the company faces widening financial losses.
Calamonte’s compensation included an annual salary of £716,436, with bonus payments totalling £376,801, including an annual bonus of £361,585. Additionally, he received £15,216 from the company’s long-term incentive plan, which will be replaced with a new value creation plan (VCP) this coming year.
Asos has reported a concerning rise in pre-tax losses, escalating from £296.7 million to £379.3 million, as sales fell by 18% to £2.9 billion. This financial downturn underscores the challenging market conditions faced by the fashion retailer.
Despite the financial challenges, an Asos spokesperson emphasised the company’s strategic progress over the past 12 months, stating that all employee remuneration, including bonuses, are board-approved and benchmarked against industry standards. The spokesperson highlighted that Asos has fundamentally improved its product offerings, leading to better profitability, positive adjusted EBITDA, and significantly improved free cash flow.
Calamonte, who is leading a turnaround initiative for the company, is optimistic about future performance. He noted the emergence of ‘green shoots in performance’, suggesting early signs of recovery as the company implements its new strategy.
Asos navigates a complex financial landscape, with leadership changes and strategic initiatives aimed at reversing its fortunes.
