Burberry faces potential investor pushback over CEO pay package
Key takeaways
- The 170-year-old luxury brand has been trying to win back the appeal of younger shoppers, while cutting costs to undo years of underperformance.
- Burberry’s AGM is scheduled for July 15 in London, with shareholder voting results to be published afterwards.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize Burberry faces potential shareholder opposition over executive pay at its annual general meeting next month, after a governance advisory body recommended investors vote against the British fashion house’s proposed new remuneration policy.
In a report circulated to clients on Tuesday, Institutional Shareholder Services acknowledged Burberry’s rationale for the overhaul and noted the company had modified its original proposals following shareholder feedback, but the proxy group said executives stood to earn significantly more without giving up much of their guaranteed pay, warranting a vote against the policy.
Under Burberry’s proposed executive pay overhaul, CEO Joshua Schulman will get performance share awards worth up to 300% of his salary, with his total potential package reaching £12.24 million ($16.41 million) if the brand achieves maximum performance targets and its share price rises by 50%.