Burberry shareholders revolt on pay deal
Published 12/07/2014 | 02:30
Burberry shareholders have staged a major revolt in protest at a multi-million pound pay package for the luxury brand's new chief executive.
Results of voting at the group's annual general meeting in London showed 52.7pc against a resolution which included a £7.2m ((€9m) "golden hello" for Christopher Bailey, who was previously chief creative officer. Including this performance-based shares package, split over five years, the 43-year-old is in line to receive up to £10.3m (€13m)a year in salary, pension, variable bonuses and long-term awards each year.
He is also due to receive shares worth £19.5m by 2018 under previous "golden handcuffs" arrangements with the group in his previous role to prevent him from joining rivals.
Afterwards, Mr Bailey appeared to brush off the suggestion that he might hand back pay, saying: "It's not about giving something up. It is not something I made the decision on, it is the remuneration committee and the chairman and the board."
The vote is non-binding and related to awards over the last financial year but chairman Sir John Peace said he was "disappointed" and would talk to shareholders to try to allay their concerns.
John-Paul Ford Rojas
Irish IndependentFollow @Indobusiness