The What: Cosmetic company Lush paid £4 million in bonuses to its top executives last year despite profits plummeting by 90%. During the same period, the company also received £5.1 million in government support, including reduced business rates and for staff.
The Details: Lush recorded a loss of £260,000 for the financial year, contrasting sharply with a profit of £21.7 million for the previous year. It attributed its poor performance to various factors, including the pandemic’s fallout, the Russia-Ukraine conflict, and Brexit. Lush has also distanced itself from social media due to its supposed ‘dangerous impact’ on teenagers’ mental health, a move that might have affected sales.
The Why: Despite the financial setback, Lush justified the bonuses as recognition for the management team’s successful takeover of its North American branch, terming it a significant transaction for the group. The company’s approach to addressing these challenges and its active social and political stances indicate a commitment to its principles even amid fiscal turmoil.