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Burberry boss faces shareholder revolt at AGM | Burberry boss faces shareholder revolt at AGM |
(34 minutes later) | |
Luxury fashion brand Burberry is facing a shareholder revolt at the company's annual general meeting in London. | Luxury fashion brand Burberry is facing a shareholder revolt at the company's annual general meeting in London. |
Up to a third of shareholders are thought to be unhappy about the pay package of Christopher Bailey, who took over as chief executive in May. | Up to a third of shareholders are thought to be unhappy about the pay package of Christopher Bailey, who took over as chief executive in May. |
Mr Bailey was granted an annual allowance of £440,000 on top of his £1.1m salary. | Mr Bailey was granted an annual allowance of £440,000 on top of his £1.1m salary. |
When appointed chief executive, he was also given 500,000 shares in the company, currently worth more than £7m. | When appointed chief executive, he was also given 500,000 shares in the company, currently worth more than £7m. |
Investors also have concerns about 1.35m shares he was allocated before becoming chief executive, which had no performance criteria attached to them. | |
At today's valuation, these shares would be worth £19.5m when he is eventually allowed to sell them in several years' time. | |
In the meantime, the company says he could earn more than £10m a year over the next five years, if the retailer hits its performance targets. | |
Warnings | |
The Investment Management Association (IMA), has issued an "amber top" warning about Burberry's pay policy. | The Investment Management Association (IMA), has issued an "amber top" warning about Burberry's pay policy. |
This is the second most serious censure the IMA, which represents the investment management industry, can give. | This is the second most serious censure the IMA, which represents the investment management industry, can give. |
In addition PIRC -Pensions and Investment Research Consultants- is advising its members to vote against the company's remuneration report. | |
Mr Bailey retained his position as chief creative officer when he took over from Angela Ahrendts, Burberry's former chief executive. | Mr Bailey retained his position as chief creative officer when he took over from Angela Ahrendts, Burberry's former chief executive. |
Earlier this week Burberry announced healthy sales growth, particularly in China. | Earlier this week Burberry announced healthy sales growth, particularly in China. |
Retail revenues for the three months to the end of June were £370m, up almost 10% from a year earlier, while like-for-like sales increased by 12%. | Retail revenues for the three months to the end of June were £370m, up almost 10% from a year earlier, while like-for-like sales increased by 12%. |