Burberry CEO gets 75 percent pay cut amid sales slump

LONDON – Burberry CEO Christopher Bailey has taken a 75 percent pay cut after the luxury retailer failed to hit profit targets amid a challenging global environment, including a slowdown in the Chinese economy.

The company’s annual report released Monday says that Bailey will be paid $2.75 million, down from $10.8 million the previous year. He and other top executive directors received no bonuses as adjusted profit before tax “was below the threshold target set by the Remuneration Committee.”

A slowdown in Chinese consumer spending and a sluggish eurozone economy, together with geopolitical tensions and volatile financial markets, hit the sector hard, with growth of between 1 percent and 2 percent, from 7 percent just two years ago.

“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,” he said.

Revenue for the year ending March 31 fell 1 percent, while net profit fell to 310 million pounds from 336 million pounds a year earlier, the company said in the report.