Burberry share price: Fashion retailer awards CEO lucrative pay deal

on Jun 6, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Friday, June 6: Burberry (LON:BRBY) has awarded its new CEO Christopher Bailey a multimillion-pound pay deal.

The UK luxury fashion company said in its annual report yesterday that Bailey will receive a basic salary of £1.1 million plus an annual bonus of up to £2.2 million this year. He is also in line for the same £440,000 cash allowance as his predecessor Angela Ahrendts. Bailey’s package for the year also includes £330,000 pension contribution, a golden hello share award of 500,000 shares and incentives which could take his payout to around £10.3 million, depending on Burberry’s performance. However, the targets set by the group are high and even in a year of record profit and sales they were not fully met in the last financial year.

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Last month, Burberry reported that retail, wholesale and digital initiatives had delivered a 17 percent increase in its annual revenue to £2.33 billion, with adjusted profit before tax up eight percent to £461 million. Both figures were in line with analysts’ consensus forecasts and represented records for full-year results (Burberry share price: Group delivers robust full-year results).

At the time of the company’s annual update, Bailey pledged to press ahead with the broad strategy laid out by his predecessor, Ahrendts. Burberry’s former CEO, who has been credited with turning the group into a global fashion brand since her arrival in 2006, has now returned to the US to take up a senior executive role running global stores at Apple, where she has been given a pay deal worth $68 million (Apple’s share price rises on hiring of Burberry’s Ahrendts).

Ahrendts’ allowances at Burberry last year were part of a pay package worth £8 million, including a £1.5 million bonus and £4.6 million in performance shares that she was awarded by the retailer’s remuneration committee despite the shares not vesting until she left.

“The three-year performance period was completed on 31 March 2014 prior to Angela Ahrendts’s departure and she had fulfilled the role of CEO for the duration of the period,” Burberry’s report revealed yesterday.
**Burberry share price**
Burberry’s share price declined more than two percent during yesterday’s trading session. Today, the stock opened marginally lower and as of 08:09 BST, it was changing hands at 1,489.00p – 0.40 percent down on the day.
Of the 19 analysts projecting 12 month price targets for Burberry for The Financial Times, the median target is 1,570.00p, with a high estimate of 2,147.00p and a low estimate of 900.00p.
**As of 08:16 BST, buy Burberry shares at 1,488.00p.**
**As of 08:16 BST, sell Burberry shares at 1,487.00p.**

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