There are significant questions being raised as Christopher Bailey, Burberry’s chief creative officer and chief executive, is receiving pay that many argue is extensive. Bailey is in line to receive over $44.5 million in shares from next year, according to Fashion Telegraph.
Three influential advisory bodies brought the pay deal to question from apprehension about it not being performance-based, Vogue reported. In addition to the $44.5 million in shares, Bailey already has an arrangement to receive almost $1.9 million for his base salary and over $750,000 as an allowance every year.
The Institutional Voting Information Service released an “amber” warning in response to the fashion retailer’s salary provisions. A shareholder meeting is to be held on Friday, July 11, to discuss these concerns. In order to prep the meeting, Burberry has provided a note explaining that Bailey’s allowance was given “as a means of providing [Bailey] with an increase to his fixed remuneration without increasing other elements of his remuneration,” according to Retail Week.
Many still remain unsure, and Retail Week reported that Bailey’s predecessor Angela Ahrendts earned a salary of “387,000 annual cash allowance to cover costs such as her car, driver and Burberry wardrobe.”
Although it may be a little too late to rid him—or the company—of all judgment, Bailey has decided to contribute 10 percent of his income to the Burberry Foundation, according to Fashion Telegraph.
Burberry has not yet agreed to comment on the situation, but Friday’s meeting will decide the outcome of the brand’s salary spending.
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