Christopher Bailey’s departure from Burberry is set to come with a generous £13 million pay out in a deal likely to cause controversy with its shareholders.
In October, Bailey announced his departure from the luxury fashion house, leaving his dual role as chief creative officer and chief executive which he held from May 2014 to July 2016, when Marco Gobetti took over as chief executive.
Since then Bailey has remained chief creative officer and president and remained a key figure at the brand in which he is credited with revitalizing into a British fashion powerhouse.
However, in March this year, shortly after Bailey’s final runway show at London Fashion Week, Burberry appointed Riccardo Tisci to take over as new chief creative officer.
Bailey’s lump sum package of £13 million consists of £4.2 million from his salary and benefits, £1.2 million in share plan awards, and gifts worth £28,000.
I will be his 400,000 shares in Burberry that provide the biggest payout when they vest in July, estimated to be worth around £8.5 million
He agreed to waive 830,550 more shares as part of his leaving agreement, which are thought to have been worth a further £14 million.
Bailey has historically sparked controversy over his hefty pay packets during his time at Burberry, with shareholders voting against a proposed £15 million renumeration in 2014.
According to its preliminary results for the year to March 31, Burberry’s pre-tax profit rose five per cent to £413 million, with attributable profit growing year-on-year from £287 million to £294 million.
Operating profit rose four per cent to £410 million, and on an adjusted basis this grew two per cent to £467 million.