Burberry investors rejects Christopher Bailey’s pay

Burberry investors have voted against the company boss’s pay package at the annual general meeting in London.

52% of shareholders voted not to support Christopher Bailey’s pay package, in a rare stand against large salaries.

Christopher Bailey, who took over as chief executive in May, has a package worth up to £10 million ($16 million) a year.

Burberry admitted it was “a lot of money”, but said the amount was justified, to keep him in the business.

The company said the vote was “disappointing”.

Burberry investors have voted against the company boss’s pay package

However, it is not binding, so the company will not be forced to change its policy.

Christopher Bailey, who was appointed chief executive in May, has an annual allowance of £440,000 ($705,000) on top of his £1.1 million ($ 1.8 million) salary.

On his appointment, he was also given 500,000 shares in the company, currently worth more than £7 million ($11.2 million).

Investors also expressed concerns about 1.35 million shares he was allocated before becoming chief executive, which had no performance criteria attached to them.

At today’s valuation, these shares would be worth £19.5 million ($31.2 million) when he is eventually allowed to sell them in several years’ time.

In the meantime, Burberry said he could earn more than £10 million ($16 million) a year over the next five years, if the retailer hits its performance targets.

Christopher Bailey retained his position as chief creative officer, when he took over from Angela Ahrendts as chief executive.

Earlier this week Burberry announced healthy sales growth, particularly in China.