Burberry CEO Bailey Gets 75% Pay Cut Amid Struggle for Growthby
Embattled chief didn’t receive bonus or incentive payments
Profit below level it was when Bailey became CEO in 2014
Burberry Group Plc’s embattled chief Christopher Bailey took a 75 percent pay cut last year as the U.K.’s largest luxury-goods maker struggled for growth.
Bailey’s remuneration fell to 1.9 million pounds ($2.7 million) in the year through March from 7.5 million pounds a year earlier, according to Burberry’s annual report published on Monday. He didn’t 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 CEO 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 pounds and pension payments of 330,000 pounds last year. He won’t 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.”