Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Burberry Faces New Pressure Over Executive Pay

Shareholder Royal London Asset Management said it would heed calls from investor advisory groups to vote against the company’s remuneration report.
Burberry store | Source: Shutterstock
By
  • Bloomberg

LONDON, United Kingdom — Burberry Group Plc's executive pay practices have drawn a protest from shareholder Royal London Asset Management, which said it would heed calls from investor advisory groups to vote against the company's remuneration report.

Royal London will also vote against the re-election of chairman John Peace and the head of the trench-coat maker’s remuneration committee, Fabiola Arredondo, at its annual meeting on Thursday, the fund manager said in an emailed statement. Burberry declined to comment.

"The chaotic response to several remuneration issues" this year heightened concerns about the company's corporate governance, Royal London's corporate governance manager Ashley Hamilton Claxton said in the statement. Concerns focus on pay awards to Burberry's former chief executive officer Christopher Bailey, who remains its creative chief, and chief financial officer Julie Brown.

Advisory groups Institutional Shareholder Services and the Investment Association have urged shareholders to vote against Burberry’s pay report at the AGM. Each group advises as much as 25 percent of the shareholder base of some large UK companies.

ADVERTISEMENT

Royal London’s decision to vote against the re-election of Peace stems from concern over the company’s reporting structure following the appointment of Marco Gobbetti as chief executive. The investor is unhappy that both Gobbetti and Bailey will report to Peace, which it says “creates further uncertainty and governance risks for investors.”

Royal London holds £33 million ($42.5 million) worth of Burberry’s shares, equal to a 0.5 percent stake.

By Cat Rutter Pooley; editors: Tom Contiliano, Paul Jarvis.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Luxury
How rapid change is reshaping the tradition-soaked luxury sector in Europe and beyond.

Marine Serre: From Radical to Pragmatist

Serre, who grew sales by 20 percent in 2023, has been named Pitti Uomo’s next guest designer. She’s using the opportunity to show her men’s collection for the first time.


Who Gets to Buy a Birkin Bag?

Hermès’ elusive sales strategy is at the centre of a new legal challenge for the French luxury giant. BoF breaks down the practices under scrutiny and what the suit could mean for the fashion industry at large.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections