Why Does The Bonus Bonus Of Burberry Management Go To The Soup Again?

According to the world clothing shoes and hats net,

In recent years, the performance of the company has been declining. The company has to tighten its financial policy. The long term tightening policy has already affected the remuneration and bonus levels of the upper level, and more and more contradictions arise.

At the beginning of June, Christopher Bailey, the creative director of Burberry, once reported that he had given up her bonus for the second time. He said: "judging from the financial performance of the company's business this year, he made such a decision voluntarily", and the board of directors of the company expressed "welcome" to his decision.

The financial goal of Burberry is to save at least 100 million pounds in the 2018 to 2019 fiscal year. This is not only a huge challenge for the top management departments, but also a passive position, which is eroded by fiscal tightening.

There was also investor dissatisfaction. According to Telegraph reports, the two major shareholder groups considered that the Burberry Group paid the salary to the new financial director Julie Brown and the outgoing executive's Christopher Bailey.

Pressure - the institutional shareholder service company (ISS) urges all investment direction Burberry's remuneration report to be voted against, and when the shareholders' meeting will be held next week, the Investment Association also issued a so-called amber warnings to senior management members.

Burberry the current financial situation makes executives face such a situation and can only give up the initiative and weaken the problems between them as far as possible.

about

Bailey's bonus, Burberry management has released a report on its performance, highlighting his contributions in four areas to prove that he deserves the prize.

In fact, in 2014, Burberry's investors made a massive protest against the high bonus of Bailey. Over half of the investors thought that Burberry paid more than normal wages in order to prevent designers from going to other brands.

Burberry creative director Christopher Bailey

Meanwhile, Julie Brown, the new treasurer, paid nearly half of her bonus directly.

According to Financial Times, Burberry executives say that feedback from shareholders is important to them, so they will listen carefully and will continue to negotiate with their shareholders on salary issues.

Recently, a series of turbulence has made Burberry more and more uncertain. According to the British guardian, last week, Sir John Peace announced that it would be leaving soon after frequent high-level changes.

During his tenure, he insisted on allowing Bailey to play the role of creative director and executive officer. He also defended Bailey on salary issues at the shareholders' meeting in 2014.

Burberry said he would discuss the successor of the chairman at the next annual meeting.

In addition, next month, the brand new CEO Marco Gobbetti will formally take over the work of Christopher Bailey. The brand hopes that the CEO from the French fashion house Cel ne will be able to reverse the extreme passive situation of the brand today.

After Gobbetti takes over, Bailey can concentrate on the field of product design.

However, the current situation of Burberry is a big challenge for the new Gobbetti. In early June, HSBC's Burberry rating was downgraded to a "reduction". It was pointed out that reducing costs could only protect Burberry's short-term returns, but "luxury stocks relied on sales growth rather than cost control".

In this sense, Marco Gobbetti assumes the burden of restructuring Burberry after taking office, perhaps starting from the US distribution network, which is heavily dependent on discount sales.

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