Come on Burberry, time for a reality check
Outlook Burberry is another successful retailer, even if the shares have moved off the express train and on to a branch line.
Unfortunately, like too many successful public companies, its directors also appear to believe that this gives them carte blanche to thumb their noses at what is considered best practice on issues such as pay – not to mention common sense.
Hence the nonsense of the £27m package of pay, perks and share options handed to new chief executive Christopher Bailey.
Burberry has sought to justify this to shareholders by arguing that it’s the going rate: look at Prada’s Miuccia Prada, who made £11.7m in 2013.
It doesn’t take the best brains of a City institution, with all their double firsts and other academic baubles, to counter that one. Parents up and down the country do it every day when their children do silly things and then claim they were only doing what little Johnny told them to.
For those shareholders still credulous enough to buy into the sort of specious rubbish Burberry’s peddling, it goes like this: “If little Johnny told you to jump of a cliff would you?”
Unfortunately, for the long-term health and sensible operation of their investment, it will still be something of a miracle if more than 30 per cent vote against the company’s pay policy.
Burberry has endured, and ignored, similar revolts in the past. So nothing is likely to change, and despite Mr Bailey having little experience of running a company – there is a world of difference between being a “chief creative officer” and a chief executive – he will probably get his money.
Unless, of course, he makes a mess of things. In which case the company, if it doesn’t sell up, will say it has to hire a restructuring specialist at a similar price for his or her “unique skills”. In executive land heads you win, tails you win, and you’ll get a Royal Mint full of coins to toss, whatever you do.
Harry Potter actor suffered 'severe flu-like symptoms' on a flight from London to Orlando
First full-length look is finally here
World cities ranked in terms of safety, food security and 'liveability'
- 2 The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Baldness could soon be treated using stem cells, scientists hope
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Sex abuse inquiry: 'Victims receive death threats' after MPs release names online
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Teenager brandishing fake gun taken down by police after demanding airtime on Netherlands' NOS TV station
The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...