Burberry investors vote down CEO's pay package

11th Jul 2014 14:32

Shareholders in Burberry voiced their concerns at the luxury fashion house's annual general meeting, where they voted down the lump sum payment its Chief Executive Officer (CEO) was expected to receive.The board angered investors after it was announced newly appointed CEO Christopher Bailey would receive up to £10m a year, the BBC reported. 52% of investors at the British luxury brand were against the pay package. The company admitted it was "a lot of money" but as the vote is not binding, Burberry will not be forced to change its policy. "There seems to be a lack of clear linkage between pay and performance. Christopher Bailey has been a very successful creative director but there is no guarantee he will be a successful chief executive and Burberry are paying him as if he already is one", an investor told The Guardian.Bailey was appointed boss in May with an annual allowance of £0.44m on top of his £1.1m salary.As of 13:57 the share price had dropped 0.34% to 1,458p.WS