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Burberry to Slash CEO Bailey's Pay Amid Chinese Sales Slump

  • Bonuses, share payouts to be cut by up to 30 million pounds
  • Shares plunge as profit set to decline for second year
Christopher Bailey.

Christopher Bailey.

Photographer: Ben Stansall/AFP via Getty Images

Burberry Group Plc Chief Executive Officer Christopher Bailey will get a pay cut along with other employees after the U.K. trenchcoat maker forecast a second year of declining profit because of weakness in Asia.

The company will cut bonuses and long-term share incentives by as much as 30 million pounds ($46.5 million), Chief Financial Officer Carol Fairweather said on a conference call Thursday. Burberry also plans to trim discretionary costs like travel by 20 million pounds this financial year in response to plummeting sales in China. The shares fell as much as 13 percent, the most since 2012.