- Vivian Hendriksz |
London - Burberry is reportedly dealing with increasing pressure from two shareholder groups concerning share awards paid out to outgoing CEO and Chief Creative Officer Christopher Bailey and CFO and COO Julie Brown.
The Investment Association issued an 'amber-alert' to its members on Wednesday, ahead of the company's annual general meeting next week, reported the Financial Times. The Institutional Shareholders Services (ISS) has is also said to be encouraging investors to vote against Burberry's remuneration report.
The ISS said that Bailey's pay was well above the average amount for CEOs, a role he is set to step down from later this year as he takes on the role of President. In addition, ISS noted that Brown's share award was designed to compensate her for shares she was set to receive from her former employer, medical equipment supplier Smith & Nephew, should she have stayed.
However, Brown is understood to have handed back 1.6 million pounds of the share award back, close to half of the total amount, after ISS noted that Smith & Nephew were given a much smaller award than the one Burberry predicted Brown was giving up. Burberry stated "the Remuneration Committee welcomed and agreed with her decision," but ISS was not convinced and stressed that she could still receive compensation from Burberry which is more than what Smith & Nephew would have given her.