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Mulberry shareholders angry at pay out for bosses

Mulberry is expected to face angry shareholders at its annual meeting on Wednesday (September 4) over a £2m long-term incentive scheme for its bosses.

The label created the new share options following the slump of the previous scheme’s value when the group’s share price fell 57% since its peak in 2012.

The new share options for management will only apply if they meet “challenging”, five-year targets and Mulberry argues the scheme falls in line with shareholder’s interests.

But according to the Independent, the move has been met with criticisim from research group Pirc, which advocates on transparency and corporate responsibility.

The consultancy has issued a statement opposing Mulberry’s plans for remuneration, saying it “has not been put to a vote which is considered to be a serious governance failure”.

Although it is not a requirement for an Aim-listed company it is “considered to be best practice”, Pirc added.

In the year to March 31 profits fell £10m at the label with total revenue for the group dropping from £168.5m in 2012 to £165.1m, while wholesale revenue was down 16% to £57.9m.

In June the brand confirmed the departure of its creative director Emma Hill after more than five years at the helm.

In March 2012 Mulberry spent £3.4m on shares for its new chief executive Bruno Guillon.

Guillon, who was previously at French luxury brand Hermes, was granted 200,670 shares when he joined the accessories brand. He paid 200p per share, which the company paid the remaining £16.89.

 

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