Former Burberry chief's Â£13m golden goodbye

EDITORIAL USE ONLY Christopher Bailey, Creative Director Burberry, attends the inaugural Hepworth Prize for Sculpture at The Hepworth Wakefield Gallery in West Yorkshire. PRESS ASSOCIATION Photo. Picture date: Thursday November 17, 2016. The new prize recognises a British or UK-based artist of any age, at any stage in their career, who has made a significant contribution to the development of contemporary sculpture, with the winner receiving a prize of Â£30,000. Photo credit should read: Anthony Devlin/PA Wire

Halifax-born Mr Bailey was Burberry’s chief executive from 2014 until July last year, and in October announced that he was leaving his role as creative director.

According to the retailer’s annual report, the 47-year-old last year received a total of £4.2 million from his salary and benefits.

This comprised £1.1 million in basic salary, alongside £469,000 in benefits, £330,000 in pension payments and a £1.22 million bonus.

The company’s pay deal also handed Mr Bailey £1.2 million in share plan awards over the period and gifts worth £28,000.

But the biggest portion of the near-£13 million payout will come from a tranche of 400,000 shares awarded in 2013, which will vest in July.

The shares are estimated to be worth more than £8.5 million.

The generous award will raise eyebrows as Burberry has faced significant shareholder opposition to Mr Bailey’s pay in past years.

In 2014, a majority of investors voted against the fashion house’s remuneration report when it recommended handing Mr Bailey a staggering £15 million.

However, as part of his leaving agreement, Mr Bailey has agreed to waive 830,550 shares, which have been awarded to him under the company’s various share plans.

The business has estimated these would have been worth more than £14 million.

The annual report also shows that Marco Gobbetti, Burberry’s new chief executive, received a £6.3 million pay award.

Shareholders supported the payments, the firm said.