Burberry boss sells £5.5m of shares
Burberry chief executive Christopher Bailey has cashed in £5.2m worth of shares just weeks after suffering a bloody nose over his pay package at the hands of shareholders.
Mr Bailey, previously the luxury brand’s chief creative officer, sold 285,451 shares he received under two different schemes dating back to before he replaced former boss Angela Ahrendts in May.
Separately, he also sold 68,667 shares, according to a stock market announcement by the group, which said the shares were sold yesterday.
It means Mr Bailey’s holding in the company now stands at 303,110 shares, worth £4.4m.
Burberry last month suffered a shareholder rebellion over his pay, with 52.7% voting against the company’s remuneration report.
The Yorkshire-born 43-year-old’s package included a £7.2m “golden hello” as he took over as chief executive.
Including this performance-based shares award, split over five years, he is in line to receive up to £10.3m a year in salary, pension, variable bonuses and long-term awards each year.
The separate “golden handcuffs” arrangement worth up to £19.5 million by 2018, made in his previous role to prevent him from joining rivals, is in addition to this.
Chairman John Peace said at the time that he was disappointed by the shareholder revolt but the vote was not binding and investors did pass a binding remuneration policy resolution by more than four-fifths.
Peace defended the decision to give Mr Bailey and Ms Ahrendts earlier share awards as a way of keeping “world-class executives” at the company, adding that Mr Bailey could earn more money abroad.
After the vote, the chief executive appeared to brush off the suggestion that he might hand back pay, saying: “It’s not about giving something up. It is not something I made the decision on, it is the remuneration committee and the chairman and the board.”
Burberry, which dates back to 1856, has traditionally been known for its classic trench coats but has widened its appeal as a luxury brand using celebrity models such as Cara Delevingne and Emma Watson in its advertising campaigns.
