link.png Rebellion at Burberry← Back

 
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Last Friday saw news of luxury fashion house Burberry PLC’s 12% increase in sales for the first quarter, quickly be replaced by reports of shareholders rejecting CEO Christopher Bailey’s pay package. 
In a non-binding vote, 52.7% of investors voted against the company's remuneration report leaving Burberry PLC facing a majority of dissatisfied shareholders. 

43-year-old Bailey became Chief Creative Officer in 2009, having joined Burberry in 2011 as Design Director. In addition to his current creative role, he was named Chief Executive Officer in May this year, replacing Angela Ahrendts who moved to Apple.
Bailey, who already owns 1.35 million shares acquired for his role as Chief Creative Officer, as well as an additional 500,000 shares awarded to him for his new CEO title, has a basic salary of £1.1 million. He has an additional cash allowance of £400,000 and could also be paid up to £10. 3 million per annum, depending on performance. This brings the worth of the total package up to £27 million.
Facing the criticism of investors, Sir John Peace, who has been chairman of Burberry PLC since 2002, defended the pay package, saying that it was to keep Bailey from being tempted by rival job offers at other brands. Although the vote is non-binding, the outcome serves as a warning for Burberry PLC’s board.
 
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