More than a third of Burberry shareholders voted against a new pay plan for directors at the company's annual general meeting (AGM) on Wednesday. The remuneration policy, which could see the chief executive earn up to £12.2 million, received 35.4% of shareholder votes against, while 64.6% voted in favor, securing approval.
Executive Compensation Details
Under the new bonus scheme, the CEO can earn a performance share award worth up to 300% of base salary, in addition to an existing share award of up to 150%. The chief financial officer can earn up to 175% of salary through the new award. Burberry stated that the plan focuses and rewards executives for executing long-term strategy and improving financial performance over three years, aligning with industry rivals' pay levels.
CEO Joshua Schulman could earn £9.5 million if all performance targets are met, rising to £12.2 million if the share price grows by 50%.
Shareholder Concerns and Company Response
The significant opposition indicates resistance to the pay plan. Burberry acknowledged the vote but noted that its 10 largest shareholders supported the policy. The company said it undertook a comprehensive consultation before the AGM and will continue engaging with shareholders to address concerns.
Burberry Forward Strategy
The Burberry Forward strategy targets £100 million in annual cost savings by the 2027 financial year, partly through cutting about 1,700 global jobs. The plan aims to revive the brand's heritage, focusing on bestsellers like trench coats, scarves, and the distinctive check pattern, after modernization efforts failed to boost performance.
