Lush Bosses Bag £5m in Bonuses Whilst Cashing in £5m Government Support (Should we be Mad?)

Ethical champions Lush reportedly paid its managers a staggering £5 million in bonuses while simultaneously accepting £5.1 million in government support and facing a concerning 90% drop in profits. To be honest, I didn’t realise me losing a bath would have such an impact on their bottom line! Jokes aside, let’s see what’s going on…

The Bonuses 

Okay, let’s get into the numbers. These bonuses were handed out in 2022 to directors, including co-founder Mark Constantine and his wife, Mo, who are shareholders, as well as six other staff members at Lush Cosmetics. In the same year, ordinary employees across Lush and its related company Cosmetic Warriors also received £1.8 million in bonuses. 

To be fair, bonuses are not uncommon in the business world, and when shared among the workforce, they can foster motivation and loyalty.

The Lush Perspective

In light of the headlines, a Lush spokesperson offered some insights. According to them, the bonus payments were linked to the successful acquisition of the Lush North America business. Furthermore, Lush has had a long-standing tradition of embracing a bonus culture. Protecting this culture is a core principle of the Lush Employee Benefit Trust, ensuring that all Lush Group employees have access to these enticing schemes, even during the pandemic. 

My Thoughts

Honestly, I find the headlines a tad sensational, and truth be told, I’ve heard juicier gossip about Lush in the past. For me, they remain one of the most ethical businesses on the High Street. So I’ll keep supporting them and indulging in their products guilt-free.

Why is Lush doing badly? 

I must admit though, it’s a bit gutting to hear that they’re experiencing losses but also kinda like that they don’t seem too bothered by it? We’re going through tough times and instead of hiking up costs and putting the problem on the customer or cutting employee benefits … they’re letting their profits take a natural dip. Could other businesses please take note? 

Covid & Brexit

Like most of us, Lush are feeling the impact of Brexit and Covid. COVID-19 disruptions caused chaos in their manufacturing operations, both in the UK and Australia. On top of that, the Omicron variant and the war in Ukraine threw some unexpected curveballs in the retail markets. 

Let’s not forget Brexit likely contributed to sluggish sales in EU countries, down by 28% compared to just 10% in the UK. Lush aims to rekindle the love of their UK-owned brand across Europe and navigate these additional administrative burdens resulting from the UK’s exit from the EU.

Ethics Over Profits

If you missed it, Lush quit social media. It was an ethical move for the well-being of young people. Until Lush are convinced that proper actions have been taken to protect them on social platforms, they won’t be returning to their instagram or other socials. In true Lush fashion, the company doesn’t hesitate to put ethics above profits but you can’t deny that their decision to step back from social media in 2021 will have hindered their sales.

As they navigate through challenges, including the ones posed by COVID-19, Brexit, and their principled stand on social media, I will continue to support and admire Lush for their unwavering commitment to doing good in the world.