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LONDON, United Kingdom — Burberry Group Plc shareholders rejected the U.K.'s largest luxury-goods maker's remuneration report as investors rebelled against a pay package awarded to new Chief Executive Officer Christopher Bailey.
About 53 percent of shareholders voted against the report at the company’s annual general meeting in London, Burberry said in a statement today. The vote is non-binding, a spokeswoman said, meaning Burberry won’t need to alter its pay policy.
The outcome was “disappointing,” Chairman John Peace said in the statement. All binding votes on the remuneration policy, share plans and board appointments were passed. Still, investors owning 16 percent of the stock opposed the directors’ pay policy and 8.8 percent voted against the executive share plan.
The Investment Management Association issued its second-most serious alert on Burberry's pay policies ahead of the AGM. Bailey, who replaced Angela Ahrendts in May, has a pay package worth as much as 10.3 million pounds ($18 million) a year.
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Burberry yesterday reported first-quarter revenue that exceeded estimates as strong sales to Chinese shoppers eased concern of fading luxury demand.
The vote is the latest in a series of protests against boardroom remuneration in the U.K. Banking group Standard Chartered Plc’s pay policy was opposed by 41 percent of voting shareholders in May, while 31.5 percent of Reckitt Benckiser Group Plc investors opposed the Dettol disinfectant maker’s report.
By Corinne Gretler; Editors: Celeste Perri, Paul Jarvis
