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Pay cut leaves Burberry boss Angela Ahrendts on £6.8m

 

Gideon Spanier
Thursday 13 June 2013 14:05 BST
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Burberry chief executive Angela Ahrendts has seen her annual pay more than halve but still collected a £6.8 million windfall, the company’s annual report showed today.

Ahrendts’ short-term pay, bonus and perks fell slightly to £3.3 million as the upscale fashion brand only met 75 per cent of its targets despite a record year for profits and revenues. Her bonus was worth 150 per cent of salary.

She also collected £3.5 million from long-term share awards that vested in the year to March.

Her package a year ago was worth £15.6 million, including £11.9 million of long-term awards which soared in value thanks to Burberry’s expansion in overseas markets such as China.

Corporate advisory group Manifest claimed earlier this week that she was the best-paid chief executive in the FTSE 100 last year.

Burberry defended Ahrendts’ pay, saying she has “generated exceptional returns for shareholders in a period characterised by economic turbulence”.

Chief financial officer Stacey Cartwright’s package fell to £3.2 million from £6.8 million.

She departs next month. New chief operating officer, John Smith, will earn a basic salary of £575,000.

He can earn a maximum bonus of £3.8 million if he hits targets and will also benefit from executive director perks that include “allowances paid in cash” for a car and clothing.

The former chief executive of  BBC Worldwide left the Corporation last autumn with a controversial £800,000 “golden goodbye”.

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