Burberry CEO Bailey gets 75% pay cut

Burberry’s chief executive officer Christopher Bailey has seen his pay drop 75% pay for fiscal 2016, according to the luxury retailer’s annual report.

Bailey’s pay has fallen to £1.89m from £7.51bn in 2015 following a year of disappointing results.

In May, the retailer posted a 10% slump in full-year pre-tax profit amid challenging markets, having reported a slowdown in sales in the fourth quarter as fewer Chinese tourists visited its stores in Europe and on the back of weaker demand in Hong Kong.

The group also announced plans to overhaul its retail operations and slash costs by £100m a year by 2019.

The annual report released on Monday showed that Bailey’s base salary was unchanged at £1.1m, but was lifted by allowances and pension payments.

It also revealed that Bailey, along with the company’s chairman and chief financial officer, did not receive a bonus or other incentive payments as Burberry missed its profit targets. Last year, Bailey received over £1.7m in bonus payments.

Chairman John Peace said: “Our overall approach to incentive structures for all staff, including senior management, is based on performance – so when the business does not perform as well, this has an impact on what we pay to our staff.

“And when the share price falls as it has in the past year, this has a substantial impact on historical share awards.”

The share price is down 35% in the last 12 months.

At 1320 BST, Burberry shares were up 0.9% to 1,079.34p.