Burberry shareholders staged a revolt against chief executive and chief creative officer Christopher Bailey’s pay scheme today, with 52.7% of investors voting against the company’s remuneration report.
The vote, which is non-binding meaning Burberry can choose to ignore it, was held at the British luxury retailer’s AGM today.
Bailey receives a £1.1m basic salary and an additional £440,000 cash allowance and an annual cash bonus of up to twice his salary, as well as share awards of up to four times salary. Last year he was given a one-off award of free shares worth almost £15m.
Burberry issued a statement saying “we are acutely aware that he could command a much higher package outside of the UK.” It is not clear yet whether they will make any changes to his pay packet.
Chairman Sir John Peace said: “After another strong trading update in which retail sales were up by 17%, we are pleased that shareholders have voted in favour of all binding votes on our remuneration policy, share plans and board appointments. However it is disappointing that the advisory vote for this year’s remuneration report did not have the same level of support.”
The vote comes shortly after the Investment Management Association issued an “amber top” warning, thought to be in relation to Bailey’s pay.