More than a third of Burberry shareholders have voted against a new pay plan for directors which could see the boss earn up to £12.2 million.
At the luxury fashion group’s annual general meeting (AGM) on Wednesday, 35.4% of shareholder votes were cast against the directors’ remuneration policy.
But the majority, 64.6%, voted in favour of the policy, meaning it secured enough for approval.
It nonetheless marks a significant proportion of shareholders who were resisting the company’s plans to introduce a new bonus scheme this year.
Under the plans, the chief executive will have the opportunity to earn a performance share award worth up to 300% of their base salary, on top of an existing share award worth up to 150%.
Burberry said this helps focus and reward bosses for executing its long-term strategy and improving its financial performance over the next three years.
It also said it goes some way towards matching what rivals in the industry pay their top executives.
It means that chief executive Joshua Schulman has the opportunity to earn £9.5 million provided he meets all performance targets and receives the maximum payable bonuses.
This rises to up to £12.2 million if Burberry’s share price grows by 50%.
Following the AGM vote, Burberry acknowledged the proportion of investors voting against the policy but said it was notable that its “10 largest shareholders” were in support.
“The board has undertaken a comprehensive consultation process in the period leading up to the AGM and will continue to engage with shareholders to understand and respond to their concerns,” the company said.