Due To Poor Burberry Performance, CEO Reduced Salary By 75%

It is reported that the pressure from the stage is still supported by the board of directors.

Burberry Group PLC (BRBY.L) chief executive officer and chief creative officer Christopher Bailey of Boboli group, because of poor performance, last year's salary was only 1/4 the year before.

Burberry Group PLC bobailey's annual report today showed that Christopher Bailey was cut from 7 million 510 thousand pounds in fiscal year 2015 to only $1 million 890 thousand in fiscal year 2016 as of March 31st, including a basic wage of 1 million 100 thousand, 330 thousand pounds, and 464 thousand pounds, and a subsidy of 464 thousand pounds. Since 2014, he has been paid for two years in a row, and the group's earnings have been back for two years.

In addition, as the group's pre tax profits failed to meet the target set by the Remuneration Committee at the beginning of the financial year, he failed to get bonus and other bonus. In fiscal 2015, his bonus and bonus reached 1 million 780 thousand pounds and 3 million 990 thousand pounds respectively.

The predecessor of Christopher Bailey, now Angela Ahrendts, senior vice president of Apple Inc. (NYSE:APPL) Apple Corp retail and online store, received an annual salary of 16 million 900 thousand in fiscal year 2012. It was the highest paid CEO in the London FTSE 100 index.

Last year

Carol Fairweather, chief financial officer of boboley, and John Smith Smith, chief operating officer, also need to receive 59% and 47% salary cuts respectively. Their bonus and stock bonus are also wasted.

In fact, the group announced its pay cut plan after releasing its interim results and earnings warning in October 2015. At that time, Carol Fairweather said that in order to cope with the drop in profits from the decline in China's sales, the annual bonus will be reduced by 30 million pounds, stock incentives and 20 million pounds of travel and car benefits.

In the mid May of this year, the group announced that it would reduce costs and streamline business in order to achieve the goal of saving 100 million pounds a year in three years.

Data show that in fiscal year 2016, fixed exchange rate, the group's adjusted pre tax profit recorded a 10% decline, calculated by real exchange rate, fell 7.7%, down from 455 million 800 thousand pounds in the previous year to 420 million 600 thousand pounds, income from 2 billion 523 million 200 thousand pounds to 2 billion 514 million 700 thousand pounds, fixed exchange rate reduction of 1%, and same store sales decreased by 1% a year, but after excluding the data from Hong Kong and Macao, there was an increase of 3%.

Bad results also caused Burberry Group PLC (BRBY.L) shares to plunge 35.1% in the past 52 weeks.

The worst thing is that the Group expects that the luxury industry will continue to face the challenges of external environment and the pressure of rising costs in the short term. Therefore, the pre tax profit of the group in the current fiscal year 2017 will only reach the lower limit of 3.75-4.49 billion, which means that the profit will shrink for three consecutive years and the fall will reach about 10%.

Christopher Bailey, who has been threatened with resignation for only two years since he took office, has almost no achievement in group management and performance. He questioned his ability to serve as chief executive officer and chief creative officer.

Now, despite the growing pressure from outside, he continues to be supported by the Burberry Group PLC Bob Lee board.

The Financial Times said last month that the group is considering hiring a senior manager to assist Christopher Bailey, who is also the chief creative officer. Analysts have speculated that the senior manager may be the former chief financial officer and executive vice president of Stacey Cartwright, but now she is in charge.

The Stacey Cartwright of Harvey Nichols service has denied.

And Carol Fairweather Fairweather emphasized the current group's top priority in the conference call after the earnings report - the cost reduction and business streamlining plan will be led by Christopher Bailey, and there is no change in top management at present.

Tang Xiaotang, founder of No Agency, said that Christopher Bailey is not a good time to take over two years ago. The cold spell of luxury goods began at the end of 2012. "As the market is heavily dependent on the Chinese market and Chinese consumers (to contribute 40% business to Burberry Group PLC", it is well known that over the past two years, China's anti-corruption has begun to affect the market, but the current economic and stock market problems are even more grim. The luxury market can be said to enter the deep winter.

Tang Xiaotang believes that the problem of how to deal with the Chinese market and Chinese consumers is a tough challenge for some industry veterans. "Christopher Bailey will face more and more challenges in terms of performance and shareholders."

Burberry Group PLC (BRBY.L) rose 0.94% on Monday to 1080.1 pence.