Bailey will be getting £1.89m this year, down from £7.51m last year, according to the fashion house's annual report, released today.
Burberry reported a 10 per cent drop in pre-tax profits, perhaps explaining why Bailey's pay package has been slashed.
Although Bailey's salary remained the same at £1.1m, he missed out on his bonus because the company missed its profit target for the year.
Read more: Burberry needs some raw executive talent
Burberry also announced that Bailey has opted to defer vesting exceptional share awards he was given in 2013 for a year at least.
6 June 2016 @ 2:45pmBurberry Group (BRBY)
The company said in May that it will cut costs and undertake a share buyback - its shares fell 35 per cent over the last 12 months.
Bailey came into the role of chief executive in 2014 after working as its chief creative officer; today's news will spark speculation over whether the unconventional promotion has has a knock-on effect for Burberry.
Burberry's chief financial officer, Carol Fairweather, also took a hefty pay cut, from £1.68m last year to £683,000 this year - a drop of over 59 per cent.