Why Does Burberry Reduce The Salary Of Christopher Bailey?

Due to weak Asian performance, Burberry, the trench windbreaker manufacturer in the UK, expects profits to continue to decline this year. The CEO Christopher Bailey and other employees' salaries will thus be reduced.

London, UK, due to weak Asian performance, the British trench Windbreaker Burberry Group Plc, the manufacturer, expects profits to continue to decline this year, and the CEO's Christopher Bailey and other employees' salaries will thus be cut.

Aged 44 Bailey In May 2014, she replaced Angela Ahrendts as CEO and maintained her position as chief creative officer since 2009. Before leaving for Apple Inc., Ahrendts doubled its sales in Buberry.

In the past 6 months, Burberry shares have fallen below their level. Investors are taking 27% of the UK's FTSE index (FTSE 100 Index). Discount Buying Burberry shares, but 4 years ago, the premium was 173%.

The company will cut up to 30 million pounds (294 million yuan) in bonuses and long-term equity incentives, chief financial officer Carol Fairweather said in a conference call on Thursday. Because of the fall in China's sales, Boboli also plans to cut about 20 million pounds (196 million yuan), such as travel expenses, in the current financial year. The company's share price dropped by 13%, hitting its lowest level since 2012.

Bailey is now facing the most severe test of its 18 months since its annual salary of 7 million 900 thousand. Though China and Hongkong markets with weaker demand have worried all luxury brands, Boboli is more vulnerable than LVMH. The manufacturer of the wool windbreaker priced at 1995 pounds has gained 30% of its total revenue from Chinese consumers, while Japan accounts for only 2%, but the Japanese consumer's willingness to shop is still high.

"Christopher Bailey's Burberry honeymoon is over." Luca Solca, an analyst at Exane BNP Paribas in London, said Luca.

The group's annual report shows that Bailey's salary structure last year included 1 million 780 thousand pounds and 4 million 430 thousand pounds from the group equity incentive plan.