Burberry's chief executive, Joshua Schulman, could earn up to £12.2 million under a new bonus scheme, as the luxury British brand scales back its climate ambitions, according to its annual report released on Thursday.
Pay Package Details
Schulman, who joined Burberry in July 2024 from Coach, received £4 million in the year to March, up from £2.5 million for his first nine months. This included £1.2 million in basic pay, a £2.3 million annual cash bonus, and £299,000 in relocation assistance after moving from New York.
Performance Targets and Future Earnings
From July, Schulman's basic pay will rise by 3% to £1.24 million. He could also earn a new long-term share bonus worth up to 300% of his salary if he meets targets, including increasing annual revenues to £3.1 billion by 2029. This award comes on top of an existing share bonus, reduced from 162.5% to 150% of salary, subject to shareholder approval.
Burberry's report states that Schulman's target pay is £6.4 million, placing him at the upper end of FTSE 100 executive pay but the lower end of global peers. This could rise to £12.2 million in three years if he hits the most 'stretching performance targets' and the share price increases by 50%.
Climate Goals Scaled Back
Burberry has extended its deadline to become carbon neutral by a decade, now targeting 2050. The annual report says: 'We have refined our climate targets to reflect a greater understanding of [greenhouse gas] emissions across our value chain.' This marks a shift from the previous strategy, set by Schulman's predecessor, which aimed for a net positive impact by 2040 and a 46% reduction in indirect emissions by 2030.
Burberry joins companies like Unilever and BP in scaling back climate efforts. The report adds: 'We believe our revised targets reflect a pragmatic response to external factors, while allowing us to maintain a level of ambition in line with our assessment of climate change as a principal risk facing our business.'
Financial Performance
Burberry made pre-tax profits of £49 million in the year to March, compared with a loss of £66 million the previous year, after cutting £80 million in annual costs, reducing store numbers, and winning back Chinese and North American shoppers under Schulman's 'Burberry Forward' campaign. Sales remained flat year on year at £2.4 billion, as the brand moved away from discounting and prioritised core products like trench coats and scarves.
Other Executive Pay
Finance director Kate Ferry's pay more than doubled to £2.5 million, up from £904,000, including a £1.3 million cash bonus and £457,000 long-term bonus. She could earn £5.6 million this year if all targets are met and the share price rises by 50%.
Danuta Gray, chair of Burberry's remuneration committee, said Schulman's reward scheme was 'chosen so as to be appropriately incentivising' and aimed to retain him by improving his pay relative to luxury peers. The report added the scheme was 'reasonable' and 'not sought to match USA pay levels', with payouts subject to 'stretching performance targets'.
