Never before has the CEO been more of a hot topic in the public discourse than he or she has been in recent years. However, despite popular belief that the CEO class is insulated from the effects of what ails their companies, Burberry‘s CEO has plenty of proof in the opposite direction.
The New York Times is reporting that Burberry CEO Christoper Bailey has been saddled with a 75 percent pay cut after the company posted disappointing sales numbers that failed to meet its previously established expectations. Instead of the £7.5 million (just under $11 million) Bailey was scheduled to earn, he will instead have to make due with just £1.9 million ($2.75 million). Misery loves company, though, and Bailey may dwell on the silver lining that all of Burberry’s top executives will join him in not receiving any bonuses as a result of the brand’s poor annual performance.
Citing a pullback in consumer spending in China, Burberry managed to generate an annual revenue mark of just £2.5 billion, a 1 percent decline over last year’s numbers. Profit, too, fell from £336 million to £310 million.
According to Bailey, these numbers reflect a period where Burberry’s global reach turned from an asset into a liability as the global economy struggled.
“Given the shape of Burberry’s global footprint, these negative trends had a disproportionate impact on our business during the year, and this was reflected in our overall financial performance,” Bailey said.