Burberry boss suffers 75pc pay cuts as profit targets missed
Published 07/06/2016 | 02:30
Burberry boss Christopher Bailey has seen his pay plummet 75pc as the fashion retailer battles slowing growth and a falling share price.
Mr Bailey's pay for 2016 came in at £1.9m (€2.4m), down from £7.5m, after he lost out on a bonus due to Burberry missing profit targets.
Last year, his bonus alone stood at £1.7m and he also received incentive payments that boosted his award.
Burberry's annual report reveals that the chief executive's salary remained flat at £1.1m and was topped up by £464,000 of allowances and pension payments of £330,000.
Chairman John Peace said: "Our overall approach to incentive structures for all staff, including senior management, is based on performance.
"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."
Last month, the group said it would slash £100m in costs to help offset difficult trading after reporting a 10pc fall in full-year profits. To compound matters, the company's share price has dropped 35pc over the last 12 months.
The luxury firm, which is famous for its trench coats and check scarves, has been hit by lower spending by Chinese tourists in continental Europe and a collapse in the Hong Kong luxury market.
The retailer makes around a third of its sales from the Asia Pacific region and has been hit hard as Chinese consumers have reined in their spending, particularly in Hong Kong - traditionally a prime shopping destination for Chinese consumers.