Burberry Boss Could Earn Up to £12.2m This Year Under New Bonus Scheme

AI Summary

Burberry's new CEO, Joshua Schulman, could earn up to £12.2m this year under a new bonus scheme. His target pay is £6.4m, which is at the upper end of FTSE 100 executive pay rates. The scheme aims to incentivize Schulman to meet performance targets, including increasing Burberry's annual revenues to £3.1bn by 2029.

The Burberry CEO's New Bonus Scheme

Burberry's CEO, Joshua Schulman, could earn up to £12.2m this year under a new bonus scheme introduced by the luxury British brand. Schulman, who was hired in July 2024 to help revive Burberry, was paid £4m in the year to March, up from £2.5m for his first nine months in the job.

Details of the Bonus Scheme

Schulman's basic pay will increase by 3% to £1.24m from July.
He could earn a new long-term share bonus worth up to 300% of salary if he meets performance targets.
The targets include increasing Burberry's annual revenues to £3.1bn by 2029.

Financial Performance

Burberry made pre-tax profits of £49m in the year to 28 March, compared with a loss of £66m in the previous 12 months. Sales were flat year on year at £2.4bn, once the effect of exchange rates was taken into account.

Impact on Executive Pay

The pay package of Kate Ferry, the finance director of Burberry, more than doubled to £2.5m, up from £904,000 the previous year. Ferry could earn £5.6m this year if she hits all targets and Burberry's share price increases by 50%.

Future Outlook

The new bonus scheme aims to incentivize Schulman to meet performance targets and retain him by improving his pay position relative to those who head the brand's luxury peers. The scheme is intended to be "reasonable" and subject to "the delivery of stretching performance targets".