Burberry's freshly appointed leader receives a £1.2M bonus within nine months, potentially poised for a threefold increase.
New Burberry CEO Joshua Schulman has earned a £1.2 million bonus for his first nine months at the luxury fashion brand, with a possible additional payout of up to three times this amount.
According to financial reports, Schulman, who previously ran handbag maker Michael Kors, received a total remuneration of £2.5 million for the year to March 2023. This included an £846,000 base salary, benefits such as a £380,000 relocation fee, and other compensation.
Schulman is eligible for bonus targets that could increase his total earnings significantly. He could receive up to 200% of his base salary in annual bonuses and another potential award of 162.5% of his salary through the Burberry Share Plan (BSP). If Burberry is reinstated in the FTSE 100 within three years, Schulman would be entitled to an additional bonus worth 300% of his salary.
Without the FTSE 100 return bonus, Schulman could earn up to £5.7 million in total for the year. Burberry's share price has surged by 40% in the past month, and though it remains 60% lower than its April 2023 high, it has posted a 14% increase since Schulman took over as CEO last July.
Burberry reported a £3 million annual loss and announced 1,700 job cuts in its last earnings report, citing the UK's punitive tourist tax and Donald Trump's tariffs as contributing factors. The brand plans to save an additional £60 million through cost-cutting measures, including eliminating night shifts at its Castleford factory in Yorkshire and reducing staff in shops.
[Enrichment Data: If Schulman meets all the bonus targets, his total earnings for the year could reach £7.95 million. This includes his base salary, bonuses, and the BSP award, but excludes any other compensation.]
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- When evaluating investments, it's crucial to consider not only potential profits but also associated risks, as evidenced by Burberry's recent £3 million annual loss and subsequent job cuts.
