Burberry paid its new CEO, Joshua Schulman, nearly £2.6 million during his first nine months in charge, which included £380,000 in relocation costs, while also announcing plans to cut 1,700 jobs globally.
According to the company’s annual report, former CEO Jonathan Akeroyd received a £1.5 million severance package after his departure in July 2024, less than three years after joining from Versace. Schulman, who previously led US brand Coach, took over in a bid to revive Burberry’s performance.
Schulman’s total pay includes a £1.2 million bonus and £1.356 million in fixed salary, which covers moving expenses. His relocation support features a £25,000 monthly housing allowance for over a year, £135,171 for finding a new home, and £120,655 for moving his belongings from New York. Additionally, he may earn up to £5.6 million this year based on bonus targets and a further £3.6 million if he doubles the share price in three years.
Despite these generous executive payouts, Burberry plans to cut about 20% of its global workforce by 2027 to save £60 million on top of a previously announced £40 million cost-saving program. The cuts include eliminating the entire night shift at the company’s Yorkshire raincoat factory.
The job cuts come after Burberry reported a £66 million annual loss, a sharp contrast to its £383 million profit the year before. The brand has struggled due to global challenges in the luxury sector and strategic missteps.
Since Schulman’s appointment, Burberry’s share price has risen nearly 50%, but concerns remain over international trade, especially due to potential US import tariffs and Chinese consumer behavior.
The board stated that Schulman’s pay package had been discussed with shareholders, many of whom supported it due to the circumstances of his recruitment. However, some shareholders did express concerns, which were considered when finalizing the bonus.
Critics, including the High Pay Centre’s Andrew Speke, called the executive compensation amid mass layoffs “ethically questionable,” warning that it could hurt employee morale and undermine the company’s long-term strategy.