According to The Guardian, Lush executives were granted £5 million in bonuses in the previous fiscal year, coinciding with the company’s receipt of £5.1 million in government support and a reported 90% decline in profits.
These bonuses were in addition to the regular salaries of directors, including co-founder Mark Constantine, his wife Mo, and six staff members at Lush Cosmetics, the primary operating company overseeing manufacturing in Poole and 886 global stores.
Simultaneously, Lush is entangled in a legal dispute with former CEO Andrew Gerrie, who seeks to sell his shares in the company. Gerrie claims his stake is now held by an investment firm he co-owns, Silverwood Brands.
Had Lush chosen to distribute profits through dividends instead of bonuses, a share would have been owed to Gerrie. Lush contests Gerrie’s attempt to sell his stake and has filed a legal action in the high court to verify the legitimacy of the shares’ transfer to Silverwood Brands.
According to the latest company accounts, ordinary employees across Lush and its sister company, Cosmetic Warries, collectively received £1.4 million in bonuses last year. The company reported that staff members, excluding directors and management, were granted an additional £14 million in bonuses in 2022.
In the same period, Lush’s pre-tax profits experienced a significant decrease of 90% to £1.7 million, down from £29.2 million, for the year ending on June 30, 2022. Although sales increased by 5% to £430.8 million, UK sales rose by 2% to £285 billion.
Lush attributes the decline in revenue in the second half of the year to inflationary pressures affecting consumer spending and sentiment. The company received £5.1 million in government financial support, primarily in the form of business rates relief.
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