Primark’s chief operating officer John Lyttle is slated to join Boohoo Group as its next chief executive officer, beginning on March 15.
Mahhud Kamani and Carol Kane, cofounders and co-ceo’s will remain on the board of the online retailer. Kamani will become group executive chairman and focus on the “long-term strategic direction of the group,” while Kane will become executive director and keep tabs on the group’s “creativity and multibrand strategy.” Furthermore, non-executive chairman Peter Williams will also step back from his post.
The company plans to hire a new non-executive chairman to join the board.
Andrew Ross, analyst at Barclays, said of Lyttle: “He is currently the [chief operating officer] of Primark — evidently a clear success story within value retail over the last decade even if they haven’t pushed hard in online. He has been at Primark since 2010 and previously was at Matalan and Arcadia. To us, he seems very well qualified for the new position, and we suspect already knows the business well.”
According to Boohoo, Lyttle’s base salary will be 615,000 pounds, plus an annual bonus of 150 percent of his base pay. His compensation package includes participation in a five-year growth share plan, presuming certain metrics are met.
Ross noted that Kamani and family own about 30 percent of the company and Kane owns about 4 percent.
Reported estimates are that Lyttle could earn up to 50 million pounds in the growth share plan if he can increase the company’s market value by 180 percent over the five-year period.