Burberry’s boss Christopher Bailey risks sparking new shareholder unrest after the upmarket retailer disclosed yesterday his cashing in of £5.2 million worth of shares weeks after an investor revolt over his pay package.
Bailey, the chief creative officer who took over as chief executive from Angela Ahrendts in May, sold 285,451 shares he received under two different schemes dating back to before his new role.
Separately, he also sold 68,667 shares, according to a stock market announcement by Burberry yesterday, which said the shares were sold on Wednesday.
At last month’s AGM, 52 per cent of shareholders voted against a resolution in the company’s remuneration report which included a £7.2m “golden hello” for Bailey in his new role.
Including this performance-based shares award, split over five years, he is in line to receive up to £10.3m a year in salary, pension, variable annual bonuses and long-term awards.
He is also due to receive shares worth £19.5m by 2018 under previous “golden handcuffs” arrangements related to his role as chief creative officer to prevent him joining rivals.
Burberry chairman Sir John Peace has defended the decision to give Bailey and Ahrendts earlier share awards as a way of keeping “world-class executives”.