Burberry shareholders have approved a new executive pay policy that could hand chief executive Joshua Schulman a package worth more than £12m, despite a sizeable investor rebellion.
Around 35.4 per cent of votes cast at the luxury retailer’s annual general meeting opposed its directors’ remuneration policy, while 64.6 per cent supported the proposals.
A separate resolution amending the rules of the Burberry Share Plan received even greater opposition, with 37 per cent of votes cast against it. Both resolutions nevertheless passed.
Under the new policy, Schulman will be eligible for performance share awards worth up to 300 per cent of his salary.
His total potential remuneration could reach £12.24m if Burberry meets its maximum performance targets and its share price rises by 50 per cent.
Influential shareholder advisory groups Institutional Shareholder Services and Glass Lewis had recommended that investors reject the proposals, raising concerns about the scale of the potential awards.
Burberry acknowledged the significant opposition and said it would continue engaging with shareholders to understand and respond to their concerns.
The luxury fashion house said both resolutions had been supported by its 10 largest shareholders and pledged to publish an update within six months, in line with the UK Corporate Governance Code.
Schulman has been leading a turnaround of the British fashion retailer since joining as chief executive in July 2024.
Burberry returned to the black during its latest financial year, recording an adjusted operating profit of £160m, up from £26m a year earlier. Reported operating profit reached £115m, compared with a £3m loss the previous year, while revenue slipped two per cent to £2.42bn.
The company has also been cutting costs and jobs as it attempts to rebuild demand by refocusing on its signature outerwear, scarves and other recognisable products.
Shareholders overwhelmingly backed Schulman’s re-election as a director, with 99.9 per cent voting in favour.
Investors also approved the appointment of Bridgepoint chief executive William Jackson as a director. Jackson is replacing Gerry Murphy as Burberry chair following a formal handover.
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