Burberry Faces Investor Backlash Over Executive Pay and Cashmere Practices
A significant portion of shareholders voted against a large bonus for the CEO and raised concerns about the company's sourcing of goat hair for cashmere.
Burberry experienced a notable investor revolt concerning executive compensation and company practices. At the luxury fashion house's annual meeting, 35 percent of shareholder votes were cast against a substantial bonus package for Chief Executive Joshua Schulman.
The proposed remuneration plan could see Schulman's pay treble to £12.2 million if certain performance targets are met, with the potential for shares worth up to 300 percent of his salary. Chairman Gerry Murphy defended the package, stating it aligns with salaries in the luxury sector and is necessary to attract top talent. However, he acknowledged that the pay award would need to be accompanied by a return to shareholder payouts.
In addition to the executive pay concerns, Burberry also faced criticism regarding its use of cashmere. Wildlife television presenter Chris Packham, in a letter read by a representative from animal charity Peta, described the firm's method of collecting goat hair as "inherently violent." Murphy responded that the company takes animal welfare seriously but indicated that Burberry would not be banning cashmere production.