Burberry's Chief Executive Officer, Joshua Schulman, and Chief Financial Officer, Kate Ferry, were granted conditional share awards on July 31, 2025, under the Burberry Share Plan 2020. Schulman received 144,658 shares, while Ferry received 81,370 shares. These awards were based on an average share price of 1,348 pence from July 28-30, 2025. The awards are set to vest on July 31, 2028, with a two-year holding period, meaning shares cannot be sold for a minimum of five years, except to cover tax liabilities. This move is part of a new reward policy aimed at incentivizing top leadership.
The vesting of these shares is contingent on continued employment and meeting performance targets across three key areas: revenue, Group Return on Invested Capital, and brand and sustainability strategies. The company's Remuneration Committee will assess these performance metrics at the vesting date and may adjust the payout if targets are not met. This structured performance-based award system aligns with Burberry's broader "Burberry Forward" strategy, which focuses on revenue growth and cost reduction.
This new compensation structure follows a period of significant pay increases and potential bonuses for Burberry's leadership. In the year leading up to May 2026, Schulman's annual salary was set to rise by 3% to £1.24 million, making him eligible for a new long-term share award potentially worth up to 300% of his salary. This could bring his total earnings to £12.2 million over three years if demanding performance targets, including growing annual revenues to £3.1 billion by 2029, are met. Similarly, Kate Ferry's pay more than doubled to £2.5 million from £904,000, including a £1.3 million cash bonus and a £457,000 long-term bonus, with the potential to earn £5.6 million if she hits all targets and Burberry's share price increases by 50%. The company aims for Schulman's target pay to be £6.4 million, competitive within the FTSE 100 but at the lower end compared to global luxury peers.
These significant awards and potential earnings are intended to retain key leadership and align their interests with the company's long-term growth and turnaround efforts. The company's pre-tax profits improved to £49 million in the year to March, compared to a £66 million loss the previous year, partly due to £80 million in cost cuts and renewed focus on core products. However, these pay changes also occurred as Burberry pushed back its carbon neutral deadline by a decade to 2050, a decision framed as a "pragmatic response to external factors" while maintaining environmental ambition.
