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Burberry CEO Gets 75 Percent Pay Cut Amid Struggle for Growth

Christopher Bailey’s remuneration fell to £1.9 million in the year through March from £7.5 million a year earlier.
Christopher Bailey | Source: Courtesy
By
  • Bloomberg

LONDON, United Kingdom — Burberry Group Plc's embattled chief Christopher Bailey took a 75 percent pay cut last year as the UK's largest luxury-goods maker struggled for growth.

Bailey’s remuneration fell to £1.9 million ($2.7 million) in the year through March from £7.5 million a year earlier, according to Burberry’s annual report published on Monday. He did not get a bonus or other incentive payments because earnings missed the company’s target.

Pressure has been mounting on Bailey amid concern that his leadership has been compromised by his dual role as chief creative officer. Profit is below the level it was when he added the role of chief executive officer in May 2014. A 35 percent slump in the share price in the past year has led analysts including Paul Thomas at Retail Remedy to call for the appointment of an experienced executive to work alongside Bailey.

Bailey received a salary of 1.1 million pounds, allowances of £464,000 and pension payments of £330,000 pounds last year. He will not get a salary increase this year and some share-based awards will now not vest, according to the report.

“Our overall approach to incentive structures for all staff, including senior management, is based on performance,” chairman John Peace said in the report. “When the business does not perform as well, this has an impact on what we pay to our staff. And when the share price falls as it has in the past year, this has a substantial impact on historical share awards.”

By Andrew Roberts; editors: Matthew Boyle, Paul Jarvis and Thomas Mulier.

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