Shareholders rebel against executive pay at Burberry
Fashion house Burberry, which scrapped plans for its Leeds factory at Temple Works earlier this week, has seen a shareholder rebellion over executive pay.
In the latest revolt by investors over a company’s pay packages, more than 31% of Burberry shareholders voted against approving the director’s remuneration report for the year ended 31 March 2017 at yesterday’s AGM.
The share scheme would see creative director and former chief executive Christopher Bailey, and finance director Julie Brown receive multi-million pound pay packages. Brown was paid £4.7m between January and March 2017 according to the Guardian, as well as a £4.5m welcome to the luxury brand.
Sir John Peace attempted to defend the pay packages at the AGM yesterday (Thursday 13 July) reportedly saying: “My job is to work with the board and remuneration committee to do what’s right for the longer term. My job is to get the best we can for the company and I think in Julie we have an absolute star.”
It is not the first time Burberry has been in hot water over pay, after shareholders rejected a pay deal back in 2014.
Burberry has been set on making £50m in cost savings this year, and has scrapped plans to build its Leeds trench coat factory at Temple Works on the South Bank earlier this week, though it has the option of another site in the city. Proposals to move 300 staff to a business services centre on Queen Street are still underway.
