Shareholders approve Burberry pay plan despite a third of votes against policy
More than a third of Burberry shareholders have voted against a new pay plan for directors which could see the boss earn up to ยฃ12.2 million.
At the luxury fashion groupโs annual general meeting (AGM) on Wednesday, 35.4% of shareholder votes were cast against the directorsโ remuneration policy.
But the majority, 64.6%, voted in favour of the policy, meaning it secured enough for approval.
It nonetheless marks a significant proportion of shareholders who were resisting the companyโs plans to introduce a new bonus scheme this year.
Under the plans, the chief executive will have the opportunity to earn a performance share award worth up to 300% of their base salary, on top of an existing share award worth up to 150%.
The chief financial officer will also be able to earn up to 175% of their salary with the new performance share award.
Burberry said this helps focus and reward bosses for executing its long-term strategy and improving its financial performance over the next three years.
It also said it goes some way towards matching what rivals in the industry pay their top executives.
It means that chief executive Joshua Schulman has the opportunity to earn ยฃ9.5 million provided he meets all performance targets and receives the maximum payable bonuses.
This rises to up to ยฃ12.2 million if Burberryโs share price grows by 50%.
The Burberry Forward strategy is targeting cost savings worth ยฃ100 million a year by the 2027 financial year, partly through cutting around 1,700 global jobs.
It also hopes to revive the brandโs heritage and focus on bestselling items,ย such as its trench coats and scarves and distinctive check pattern, after efforts to modernise failed to deliver a boost.
Following the AGM vote, Burberry acknowledged the proportion of investors voting against the policy but said it was notable that its โ10 largest shareholdersโ were in support.
โThe board has undertaken a comprehensive consultation process in the period leading up to the AGM and will continue to engage with shareholders to understand and respond to their concerns,โ the company said.
