Burberry’s Chief Executive Christopher Bailey has received a 75% cut to his yearly earnings as the luxury retailer suffers from slowed growth and falling shares.
Bailey’s pay for this year will be £1.9m, down from £7.5m as the Burberry boss lost out on his bonus as a result of Burberry’s inability to meet targets. Last year his bonus alone totalled £1.7m.
The brand best known for its trench coats and check prints revealed in its annual report that Bailey’s base salary remained flat at £1.1m and was topped up by £464,000 of allowances and £330,000 in pension payments.
After reporting a 10% drop in full year profits, the retail group said it would cut £100m in costs to aid difficult trading conditions. Falling sales have been a result of lowered spending among Chinese tourists in Europe and the collapse of Hong Kong’s luxury market.
“Our overall approach to incentive structures for all staff, including senior management, is based on performance” said John Peace, Burberry Chairman.
“When the business does not perform as well, this has an impact on what we pay to our staff. And when the share price falls as it has in the past year, this has a substantial impact on historical share awards.”