Burberry's Christopher Bailey just got a massive pay cut

 
Helen Cahill
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Burberry Prorsum Backstage - LFW Autumn/Winter 2010
Christopher Bailey has overseen a bad year for the company (Source: Getty)

Burberry's chief executive was saddled with a 75 per cent pay cut today after a disappointing year for the British brand.

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.

The brand has been expanding into places like China and Hong Kong, and has therefore been particularly exposed to disruption in the region.

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.

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