Burberry's chief executive cashes in 5.2 million pounds worth of shares

Friday, 22 August 2014
Christopher Bailey, chief executive at Burberry has raked in over 5.2 million pounds after selling shares in the luxury fashion house. A stock market filing unveiled that Bailey has cashed in 68,667 shares on Wednesday and close to three quarters of two additional sets of performance related shares equal to 285,451 shares he was granted in 2011 and 2009 respectively, which recently vested.

Bailey currently holds 303,110 shares in the luxury label, worth 4.37 million pounds, 13 percent more than he formerly owned before he was given the share awards. “Christopher Bailey has exercised the option on a number of shares that he was awarded during his time as chief creative officer,” said the luxury company in a statement.

Bailey sells shares for 5.2 million pounds

“As part of this process the number of Burberry shares he actually owns has increased. There are only certain times of the year when board members of a public company can sell shares which is why he is doing this now.”

However, the share sale still comes at a delicate time, not long after shareholders voiced their concerns last month towards the luxury company handing Bailey a 1.35 million share award prior to him being named as Angela Ahrendt's successor.

During Burberry's annual shareholder meeting in London, 52.7 percent of shareholders voted against the directors remuneration report, which contained details of the share awards to Bailey and were not linked to performance targets. However the vote was non-binding, which meant that Burberry did not have to alter its pay policy for Bailey.

Chairman Sir John Peace said at the time of the annual general meeting that he was disappointed by the shareholders opposition, adding: “The board took the view that it was essential that we retain Christopher in the business."

"We know the amount paid to Christopher is a lot of money but much of it is performance-related and he will receive it only if Burberry performs strongly. And we are acutely aware that he could command a much-higher package outside the UK.”

Part of the 5.2 million pounds are understood to be used to pay Bailey's tax bill, leaving him with an estimated 4.1 million pounds.

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