Burberry Shareholders Approve Controversial Director Pay Policy

Shareholders of Burberry approved a new directors' remuneration policy during the company's annual general meeting on Wednesday. The plan allows Chief Executive Joshua Schulman to earn up to £12.2 million, contingent on meeting performance targets and achieving a 50% increase in the company's share price.

The policy passed despite significant opposition, with approximately 35.4% of votes cast against it. Both Institutional Shareholder Services and Glass Lewis, prominent proxy advisers, had recommended that investors reject the plan. Burberry's board noted that while the policy lacked a supermajority, the company's ten largest shareholders supported the measures.

This pay structure is linked to the Burberry Forward strategy, which aims for £100 million in annual cost savings by the 2027 financial year. This restructuring include the elimination of roughly 1,700 global jobs. During the same meeting, shareholders confirmed William Jackson as the new chair of the company, replacing Gerry Murphy.