Shareholders revolt over pay package for new Burberry CEO
British designer Christopher Bailey is seen following the Burberry Spring/Summer 2010 collection show on the fifth day of the London Fashion Week, in London, Tuesday Sept. 22, 2009. (AP Photo/Lefteris Pitarakis)
The Associated Press
Published Friday, July 11, 2014 10:18AM EDT
LONDON -- Shareholders of luxury British fashion house Burberry have voted to reject a multimillion-pound pay package for the brand's new chief.
Results of voting at Burberry's annual general meeting Friday showed that 52.7 per cent of shareholders protested the earnings Christopher Bailey is expected to receive.
Bailey was appointed chief executive in May on top of being the brand's chief designer. He received a one-time award of 500,000 shares worth some 7 million pounds ($12 million) last year and also receives 1.1 million pounds ($1.9 million) in salary, bonuses up to twice the salary and cash allowances.
Friday's vote was non-binding but it was a rare revolt by shareholders over executive salaries. Chairman John Peace said he was disappointed and he would talk to investors to try to address their concerns.