Burberry faces investor backlash over proposed CEO pay package

Tuesday 16 June 2026 - 15:45

British luxury fashion house Burberry is facing potential resistance from shareholders over its proposed executive compensation plan, ahead of its annual general meeting next month. The debate highlights ongoing tensions between corporate boards and investors over pay structures in major listed companies.

A governance advisory firm has recommended that investors vote against the company’s revised remuneration policy, arguing that the package could significantly increase executive earnings without sufficient changes to guaranteed pay levels. The advisory body acknowledged that Burberry had adjusted its original proposal following earlier shareholder feedback, but still raised concerns about the overall structure of the plan.

Under the proposed framework, Chief Executive Officer Joshua Schulman could receive performance-based share awards worth up to 300% of his annual salary. If maximum performance targets are met and the company’s share price rises significantly, his total compensation could reach more than £12 million.

Burberry has been undergoing a strategic transformation aimed at reviving growth, improving profitability, and strengthening its position in the global luxury market. The company has also been working to attract younger consumers while streamlining operations to address years of weaker performance.

However, the business has faced external pressures, including fluctuations in global demand and geopolitical instability affecting key markets in Europe and the Middle East. These challenges have added complexity to its turnaround efforts and influenced investor sentiment.

Shareholder votes at the upcoming annual general meeting will determine whether the proposed pay policy is approved. The outcome will be closely watched by market analysts as part of a broader debate over executive compensation practices in the corporate sector.

Overall, the dispute reflects growing scrutiny from investors over high-value remuneration packages, particularly in industries where companies are working to balance performance recovery with cost discipline and long-term shareholder value.