LONDON — A majority of Burberry investors on Wednesday supported an executive pay overhaul allowing CEO Joshua Schulman to get much bigger share awards, significantly increasing his compensation if performance and share price targets are met.
Many shareholders rebelled against the change, however, with 37 percent of votes at the company’s annual general meeting against and 63 percent in favor.
Under the new policy, Schulman would get performance share awards worth up to 300 percent of his salary, with his total potential package reaching 12.24 million pounds ($16.41 million) if the brand achieves maximum performance targets and its share price rises by 50 percent.
Influential proxy advisers Institutional Shareholder Services and Glass Lewis had both recommended investors vote against the change and vote against the resolution on directors’ remuneration policy.
In a statement acknowledging the investor pushback, Burberry said its board had been consulting with shareholders in the run-up to the AGM and would continue to engage to respond to their concerns, and provide an update within six months — as required by UK governance rules for any resolution with less than 80 percent support.
Burberry said both resolutions were supported by its 10 largest shareholders.
Schulman is leading a turnaround at Burberry, and has slashed jobs and returned the company to profit.
In a struggling global luxury sector, Burberry has rewarded shareholders better, in terms of total returns over the two years since he joined, than bigger rivals like LVMH, Hermes, Kering and Richemont.
Investors also confirmed William Jackson as Burberry’s new chair, taking over from Gerry Murphy, who has held the role since 2018.
