LONDON (Reuters) – Burberry paid its chief executive Christopher Bailey 75 percent less last year than in the 2014-15 period after the British luxury brand failed to meet its profit target, meaning the boss lost out on his bonus and other incentives.
Bailey’s total pay package plunged to 1.89 million pounds ($2.73 million) for the twelve months ended March 31, from 7.5 million pounds the year before, after falling profit meant no income from either an annual bonus or his longer term co-investment plan, according to the firm’s annual report.
The 160-year-old brand — famous for its trench coats lined with checks — in May reported a 10 percent drop in annual adjusted pretax profit, hit by a sales slowdown in Hong Kong and mainland China, plus lower sales in European capitals as tourist shoppers deserted after last year’s attacks in Paris.
Bailey, who combines the roles of chief executive and chief designer, is in the process of overhauling the business to shrink its product range and focus more on handbags. Reflecting the challenges, the stock is down 35 percent over the last twelve months.
($1 = 0.6936 pounds)
(Reporting by Sarah Young, editing by Louise Heavens)