Burberry chief could earn up to £12.2m under new bonus plan
The Story
Burberry’s annual report states that chief executive Joshua Schulman could earn up to £12.2m under a new bonus scheme. The report says Schulman’s target pay is £6.4m, with the potential to rise to £12.2m in three years if “stretching performance targets” are met and the share price increases by 50%. The new long-term share bonus is part of an effort to retain Schulman and align his pay with luxury peer executives.
Key Facts
- Schulman was paid £4m in the year to March 2026, up from £2.5m in his first nine months.
- His latest package included £1.2m basic pay, a £2.3m annual cash bonus, and £299,000 in relocation assistance after moving from New York.
- Burberry made a pre-tax profit of £49m in the year to 28 March 2026, compared with a loss of £66m the previous year.
- The company cut £80m in annual costs, reduced store numbers, and saw sales flat at £2.4bn after adjusting for exchange rates.
- Finance director Kate Ferry saw her pay more than double to £2.5m; she could earn £5.6m if targets are met and the share price rises 50%.
- From July 2026, Schulman’s basic pay will increase 3% to £1.24m, and he will be eligible for a new long-term share bonus worth up to 300% of salary.
- The new bonus requires meeting performance targets including increasing annual revenues to £3.1bn by 2029.
- Existing share bonus will be reduced from a maximum 162.5% of salary to 150% if shareholders approve the new scheme in July 2026.
- Danuta Gray, chair of Burberry’s remuneration committee, said the scheme is “appropriately incentivising” and aims to retain Schulman.
- The report states the scheme is “reasonable” and does not match USA pay levels, with payouts subject to performance targets.
- Schulman became CEO in July 2024, replacing Jonathan Akeroyd.
Conflicting Reports
No conflicting reports identified in the source article.
Still Unclear
It is unclear whether shareholders will approve the new bonus scheme at Burberry’s annual meeting in July 2026. The article also does not specify the exact metrics for all “stretching performance targets” beyond the revenue goal.
Misconceptions
No widespread misconceptions addressed in the source article.
Key Figures
- Joshua Schulman – chief executive of Burberry (former CEO of Coach)
- Kate Ferry – finance director of Burberry
- Danuta Gray – chair of Burberry’s remuneration committee
- Jonathan Akeroyd – previous CEO of Burberry (replaced by Schulman)
Sources: The Guardian
