Burberry shareholders’ backlash over Bailey’s pay,’not based on performance’
Burberry shareholders will this week register their “concerns” over the pay deal agreed with Christopher Bailey, the brand’s chief executive and chief creative officer, The Sunday Times reports. Three “influential advisory bodies” have raised concerns of one-off share awards for Bailey, the paper says, whose pay is “not performance based”.
Bailey is set to receive shares worth more than £26 million from next year as part of an agreement that also includes a £1.1 million basic salary and a £440,000 annual allowance. Bailey’s predecessor,Angela Ahrendts, received a similar allowance package while holding one of the designer’s two titles, that of CEO. The Times reports that no other FTSE 100 boss receives such an allowance.
The Investment Management Association, which promotes a “commercially successful and growing UK investment management industry”, has released an “amber top” rating on Burberry’s pay policies – asking its members to carefully consider Bailey’s agreement ahead of the brand’s annual shareholders meeting on Friday. The association’s intervention often precedes a revolt by shareholders over executive pay, suggesting that the British brand may suffer the same fate later this week.