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You can find the current article at its original source at https://www.theguardian.com/business/2017/oct/31/christopher-bailey-to-cut-all-ties-with-burberry
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| Christopher Bailey to cut all ties with Burberry | Christopher Bailey to cut all ties with Burberry |
| (7 months later) | |
| Christopher Bailey, who stepped down as Burberry chief executive in July after investor unease, is to leave the company by the end of next year with an expected payout of up to £12m. | Christopher Bailey, who stepped down as Burberry chief executive in July after investor unease, is to leave the company by the end of next year with an expected payout of up to £12m. |
| Shares in the luxury goods retailer, renowned for its trenchcoats and distinctive check print, fell more than 2% initially, although they recovered some ground to close 1% lower. | Shares in the luxury goods retailer, renowned for its trenchcoats and distinctive check print, fell more than 2% initially, although they recovered some ground to close 1% lower. |
| Bailey was credited with helping transform Burberry from a small UK company into a global fashion brand, building its digital presence by streaming its fashion shows live and redesigning its flagship stores. | Bailey was credited with helping transform Burberry from a small UK company into a global fashion brand, building its digital presence by streaming its fashion shows live and redesigning its flagship stores. |
| Burberry's careful designs are undone as Christopher Bailey bows out | Nils Pratley | |
| Bailey will receive his salary, pension and contractual cash allowance and non-cash benefits until the end of 2018, but no cash bonus will be paid for the period after March. | Bailey will receive his salary, pension and contractual cash allowance and non-cash benefits until the end of 2018, but no cash bonus will be paid for the period after March. |
| This is worth about £1.9m. In addition he is entitled to share awards that could be worth up to £10m. | This is worth about £1.9m. In addition he is entitled to share awards that could be worth up to £10m. |
| But he is surrendering various other share awards given as part of the company’s incentive plans, valued at £16m. | But he is surrendering various other share awards given as part of the company’s incentive plans, valued at £16m. |
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| Bailey has been with Burberry for 17 years and its chief creative designer since 2009. In May 2014 he also became chief executive after tAngela Ahrendts left to join Apple. | Bailey has been with Burberry for 17 years and its chief creative designer since 2009. In May 2014 he also became chief executive after tAngela Ahrendts left to join Apple. |
| Investors initially backed Bailey in his dual role, but anxiety over his leadership began to grow after flagging sales, especially in key markets such as China and the Middle East. | Investors initially backed Bailey in his dual role, but anxiety over his leadership began to grow after flagging sales, especially in key markets such as China and the Middle East. |
| There were also protests against his pay packet, which rose from £1.9m to £3.5m last year, while he also received £10.5m in shares in July. | There were also protests against his pay packet, which rose from £1.9m to £3.5m last year, while he also received £10.5m in shares in July. |
| As a result, Burberry appointed the luxury goods veteran Marco Gobbetti as chief executive, with Bailey given the title of president to add to his chief creative officer role. | As a result, Burberry appointed the luxury goods veteran Marco Gobbetti as chief executive, with Bailey given the title of president to add to his chief creative officer role. |
| In a statement, Burberry said Bailey would step down in March 2018 to pursue new creative projects, but would provide support to Gobbetti until the end of next year. | In a statement, Burberry said Bailey would step down in March 2018 to pursue new creative projects, but would provide support to Gobbetti until the end of next year. |
| Gobbetti has been with Burberry since January and formally took over as chief executive in July. Sources said the two had been working together on strategy, but Bailey felt with the new leadership in place it was time to move on. | Gobbetti has been with Burberry since January and formally took over as chief executive in July. Sources said the two had been working together on strategy, but Bailey felt with the new leadership in place it was time to move on. |
| Bailey said the decision to leave was not an easy one. He added: “I do truly believe, however, that Burberry’s best days are still ahead of her and that the company will go from strength to strength with the strategy we have developed.” | Bailey said the decision to leave was not an easy one. He added: “I do truly believe, however, that Burberry’s best days are still ahead of her and that the company will go from strength to strength with the strategy we have developed.” |
| Gobbetti said he was sad “not to have the opportunity to partner with [Bailey] for longer” but he had enormous confidence in the company’s future. | Gobbetti said he was sad “not to have the opportunity to partner with [Bailey] for longer” but he had enormous confidence in the company’s future. |
| Rogerio Fujimori, an analyst at RBC Capital Markets, said it was negative news for the company but pointed to Phoebe Philo at the LVMH-owned Céline – Gobbetti’s previous employers – as a possible replacement for Bailey. | Rogerio Fujimori, an analyst at RBC Capital Markets, said it was negative news for the company but pointed to Phoebe Philo at the LVMH-owned Céline – Gobbetti’s previous employers – as a possible replacement for Bailey. |
| Fujimori said: “We view this as a near-term net negative for the stock given Mr Bailey’s long-term track record and investors’ renewed hopes that the brand would regain its mojo as Mr Bailey would focus on his creative role (which is what he does best) since Marco Gobbetti took over the chief executive role last July. | Fujimori said: “We view this as a near-term net negative for the stock given Mr Bailey’s long-term track record and investors’ renewed hopes that the brand would regain its mojo as Mr Bailey would focus on his creative role (which is what he does best) since Marco Gobbetti took over the chief executive role last July. |
| “Market participants are now speculating on a potential high-profile name in the fashion world taking over the creative role at Burberry to open a new chapter for the brand. | “Market participants are now speculating on a potential high-profile name in the fashion world taking over the creative role at Burberry to open a new chapter for the brand. |
| “Many investors are inevitably linking today’s news to recent unsubstantiated press reports from Business of Fashion, which reported on 17 October that LVMH was interviewing designers to replace Céline director Phoebe Philo, who has been at Céline for the last 10 years and worked many years with … Gobbetti, successfully turning around Céline.” | “Many investors are inevitably linking today’s news to recent unsubstantiated press reports from Business of Fashion, which reported on 17 October that LVMH was interviewing designers to replace Céline director Phoebe Philo, who has been at Céline for the last 10 years and worked many years with … Gobbetti, successfully turning around Céline.” |
| Charlotte Pearce, a retail analyst at GlobalData, said: “It is crucial that Burberry finds someone with respect for the brand’s British heritage but who is able to further evolve the label creatively and bring it into a new era.” | Charlotte Pearce, a retail analyst at GlobalData, said: “It is crucial that Burberry finds someone with respect for the brand’s British heritage but who is able to further evolve the label creatively and bring it into a new era.” |
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