Although the British luxury company reported better-than-expected first quarter sales on the back of a rebound in China, new Chief Executive #Marco Gobbetti still has the task of reigniting interest in the tired brand.
This year has seen some UK companies show more restraint when it comes to pay. The abstemious stance demonstrates that boards are listening to investors’ reservations over remuneration.
Brown handed back up to £2.4 million ($3.1 million) worth of share awards that were to compensate her for the loss of the equivalent at her former employer, Smith & Nephew Plc. The move came after it emerged that her award on joining Burberry was worth more than she could have received at Smith & Nephew.
Bailey, meanwhile, waived his bonus for the last two years. He also deferred some of the 1 million shares he was awarded in 2013, prior to his appointment as chief executive. However, he’s still eligible to receive stock worth about £11 million at the current share price from that award, and another share grant in 2014. The 2013 tranche had no performance criteria attached.
Whoever fills his shoes should follow some of Burberry’s peers and listen at an earlier stage to shareholder concerns over remuneration in order to avoid more bruising battles in future.
Source: The Business of Fashion