THE Yorkshire-born chief executive of luxury retailer Burberry could face an investor revolt this week over a controversial golden hello payment when he took the top role.
According to a national newspaper, a number of large shareholders are unhappy over the pay deal for creative director Christopher Bailey, who became Burberry chief executive in May.
The Investment Management Association is understood to have urged its members, which control about 15 per cent of the stock market, to scrutinise the payment before casting their votes at the company’s annual general meeting on Friday.
Mr Bailey, who was brought up in Halifax and is credited with transforming the group’s fortunes alongside former CEO Angela Ahrendts, is believed to have signed two contracts ahead of his appointment.
He will pocket 1.35m Burberry shares within four years, regardless of how the company performs, as well as a £440,000 a year “cash allowance”.
In addition, he is paid £1.1m salary and will receive pension top-ups worth £330,000.
Under a separate bonus scheme, he could pocket a further raft of shares, worth £7.3m if he meets all his targets.
The 158-year-old firm, best known for its camel, red and black check pattern, reported an eight per cent rise in pre-tax profits to £461m in the year to March 31.
This was on the back of a 17 per cent surge in sales to £2.33bn.
Revenues were driven by an 11 per cent jump in sales in China and strong sales of large leather goods, menswear and outerwear, which includes the brand’s signature trench coats, which are made in Castleford.