Asos boss enjoys bumper pay deal despite widening losses at online fashion giant

The boss of online fashion giant Asos has seen his pay packet rise by 44% over the last year, despite the company's losses widening.

The London-listed retailer's latest annual report revealed that CEO Jose Antonio Ramos Calamonte's earnings were bolstered by a bonus for the past year. Official figures disclosed that Mr Ramos Calamonte pocketed £1.17m for the year ending September 1, marking a 43.9% increase from the previous year's £814,858.

This bump in pay came due to £376,000 in bonuses, including an approximate £361,000 performance-linked bonus. Mr Ramos Calamonte earned this bonus while spearheading a significant turnaround strategy aimed at steering Asos back to profitability and reversing a downturn in sales.

Earlier in the month, Asos reported to its investors that it had sunk further into the red, with pre-tax losses rising to £379.3 million for the year to September 1, compared to £296.7m the year before. It revealed the challenges of battling to clear a £1.1bn stock mountain since 2022, with £520 million still outstanding and about a £100m write-down on the value of its remaining stock.

It also reported that sales tumbled 16% to £2.9bn over the year, with a heavier fall than previous forecasts. Despite these setbacks, the CEO expressed optimism, noting the emergence of "green shoots" from the ongoing restructuring efforts.

The latest figures reveal that Dave Murray, who stepped into his role as chief finance officer in April, was paid £259,113 for his services up to September 1. An Asos spokesperson defended the remuneration, stating: "All employee remuneration is approved by the board and based on industry benchmarks and achieving strategically important objectives.

"Despite challenging market conditions, Asos has made considerable progress to transform the business over the last 12 months."

Highlighting recent achievements, they noted: "Product is in the strongest position it has been in for years, while profitability has been fundamentally improved, leading to the delivery of positive adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) and significantly improved free cash flow."