More than half of shareholders at the annual general meeting (AGM) for luxury retailer Burberry have rejected a pay deal worth up to £23.6m for the chief executive.
Some 52% of votes cast in the non-binding ballot did not support the remuneration report for Christopher Bailey or the other executive directors of the 158-year-old retailer's plan.
Included in the payment is his annual salary of £1.1m – which has not changed since his last role – and a golden handshake worth £7.25m provided to Mr Bailey if he loses his job.
It would also include his £440,000 allowance, which Burberry said does not include allowances for clothing or a company car.
A large part of the package includes a performance-based bonus and participation in the firm's executive share plans, any awards from which will vest from 2017.
Chairman John Peace defended Mr Bailey's pay at the meeting, arguing that the pay is comparable with competitors.
Burberry defended the pay deal for CEO Christopher Bailey He said: "We know the amount paid to Christopher is a lot of money but much of it is performance related."
Mr Bailey took on the role of chief executive alongside his role as chief creative officer last May. He joined the firm in 2001.
Burberry also defended Mr Bailey ahead of the AGM.
It said: "The board believes that Christopher's vision and leadership will keep Burberry on the forefront creatively, digitally and financially."
But the Institute of Directors (IOD) said the revolt was a "warning shot" over pay concerns.
IOD director of corporate governance Dr Roger Barker said: "Burberry shareholders have fired a warning shot with today's vote.
"They are clearly not convinced that executive pay at the company has been transparently linked to tough performance targets.
"The onus in now on the board to urgently engage with shareholders to convince them they are responding to their understandable concerns."
Burberry also mentioned in its 2013/14 annual report that Mr Bailey's promotion would "create further value for shareholders in the next exciting stage of its evolution".
Earlier this week, the Investment Management Association gave Burberry an "amber top" rating on the proposed pay policies, hinting that its members, who account for 15% of the stock market, should carefully read into Mr Bailey's awards before making a final decision.
As well as the controversial pay deal, other issues debated at the London AGM include the directors' remuneration policy and report.
The meeting comes after shares in the designer brand rose 2% on the FTSE 100 early on Thursday, when like-for-like sales were up by 12% in the three months from June 30.
Anda sedang membaca artikel tentang
Shareholders Slam £23m Burberry Boss Pay Deal
Dengan url
http://kaumkusaman.blogspot.com/2014/07/shareholders-slam-a23m-burberry-boss.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Shareholders Slam £23m Burberry Boss Pay Deal
namun jangan lupa untuk meletakkan link
Shareholders Slam £23m Burberry Boss Pay Deal
sebagai sumbernya
0 komentar:
Posting Komentar