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Burberry CEO Takes 75% Pay Cut After Rough Year

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Burberry CEO Takes 75% Pay Cut After Rough Year

The high-end UK-based fashion line Burberry (BURBERRY GROUP ORD GBP0.0005 (OTC: BBRYF) (OTC: BURBY) (LON: BRBY)) had a terrible year, as the company's pretax profit plunged 10 percent to £421 million ($612.41 million). The company's London-listed stock has lost more than 8 percent since the start of 2016, nearly 35 percent over the past year and is lower by more than 16 percent over a five-year period.

Burberry has seen sales in its key Asian market fall sharply. According to a report from CNN Money, Chinese consumers "have been turning away from Burberry's trademark checked trench coats and other luxury goods" amid a slumping economy.

Related Link: Do Burberry Earnings Forecast Trouble For Luxury Retailers?

At least the company's CEO, Christopher Bailey, is setting an example in how executives should act at a time when shareholders are seeing losses. Bailey received a pay of just £1.9 million for the year ending March 31, 2016, compared to his £7.5 million a year ago.

Bailey also serves as Burberry's chief creative officer.

Meanwhile, Burberry said none of its top executives will receive any sort of annual bonus this year. The move follows a "backlash" over executive compensation and was made to "appease investors" ahead of next month's annual general meeting of Burberry's shareholders.

 

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