£13m golden handshake for Burberry’s Christopher Bailey
Mr Bailey, who was once the company’s chief executive, stood down from the board in March.
Burberry’s Christopher Bailey is to walk away from the fashion chain with a bumper pay-off of around £13 million.
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.
Former Givenchy designer Riccardo Tisci took over as Burberry’s creative director on March 12.
The annual report also shows that Marco Gobbetti, Burberry’s new chief executive, received a £6.3 million pay award, which included a £4.3 million buyout of his old share awards from his time at Celine.
The fashion business also recently announced a new chairman, hiring former Kingfisher chief executive Gerry Murphy, who succeeded Sir John Peace on May 17.
In Burberry’s annual report, Sir John said shareholders had supported the remuneration report.
“The board took proactive measures to address concerns with the report following its publication, and we appreciate the importance of shareholder alignment on remuneration matters,” he said.