Christopher Bailey, who officially took over as both CEO and chief creative officer of Burberry this month, will be well-compensated for his efforts. The designer-turned-CEO is set to make up to £10.3 million this year (about $17.3 million) from a mix of salary, bonuses and a starting package of shares.
The numbers are slightly greater than what former CEO Angela Ahrendts, who joined Apple as senior vice president of retail earlier this month, was making at Burberry. Bailey's base salary is set at £1.1 million (Ahrendts's was £1.02 million) and his expense allowance at £440,000 versus Ahrendts's £387,000. (It was reported that Ahrendts's expense allowance covered her clothes and driver, among other things, but we don't know what Bailey's allowance covers.) He is also receiving a pension allowance of £350,000.
A source familiar with Burberry's compensation packages says the figures match what Bailey was being paid prior to his promotion to CEO. What's new are the bonuses: He can receive a cash bonus of up to double his base salary (£2.2 million) at the end of the year (compared to Ahrendts's £1.98 million) and share awards of up to four times his base salary (£4.4 million). As a starting bonus, he is receiving 500,000 Burberry shares that will pay out over five years that, at current value, are worth £1.8 million per year. He is also receiving a pension allowance of £350,000. Altogether, 80 percent of his compensation is performance-based.
The figures, which were first reported by the Guardian, were circulated to major shareholders the day before Bailey took on his new role. As the paper notes, shareholders sometimes push back on large share awards for executives promoted internally -- usually those are granted to incoming executives to compensate for a bonus they're giving up from their previous employers.
Note: This story was updated Friday morning with more detailed information about Bailey's compensation package.