--Angela Ahrendts receives GBP2M bonus after "outstanding" year for Burberry
--Award follows falling annual payments for chiefs at M&S, Sainsbury
--Tesco boss had previously waived bonus
By Peter Evans
LONDON--Burberry PLC's (BRBY.LN) Chief Executive Angela Ahrendts will receive a pay and bonus package of GBP3.7 million ($5.7 million) for fiscal 2012, up 4.7% from the previous year, after exceeding profit targets, the luxury retailer said Friday, putting it out of kilter with other major U.K. retailers which have this week reduced payouts for top executives.
Ms. Ahrendts will be paid a bonus of GBP1.98 million, the same amount as last year, on top of a base salary of GBP990,000. She will also receive pension payments and other benefits totalling GBP718,000.
The payment reflects an "outstanding performance" and "exceptional shareholder returns," Burberry said in its annual report.
Burberry delivered a 26% net profit increase for the year to March 31 on revenue 24% higher at GBP1.86 billion. The company, famed for its fashion trench coats and plaid-patterned accessories, has been at the forefront of a worldwide surge in demand for luxury goods in recent years, led by China.
Other U.K. retailers have struggled as torrid economic conditions at home and in Europe and low consumer confidence have eaten into profits. In such a climate, some companies have reduced executive bonuses, especially in the wake of a recent series of shareholder revolts in other sectors over the perception of excessive boardroom pay at underperforming companies.
Marks & Spencer Group PLC (MKS.LN) said Thursday its chief executive Marc Bolland would receive a total pay and bonus package of GBP2.5 million, down from GBP4.9 million a year earlier--although a significant proportion of the previous year's payment came as part of a signing on agreement. Full-year pretax profit at M&S fell 1%, but Mr. Bolland qualified for a GBP664,000 bonus in cash and shares for hitting internal targets.
Also Thursday, grocer J Sainsbury PLC (SBRY.LN) announced its CEO Justin King would see his total pay fall 9% to GBP3.4 million, even as the supermarket reported an increase in profit. Mr. King failed to hit internal sales targets, Sainsbury said in its annual report.
Last month, Tesco PLC (TSCO.LN) head Philip Clarke waived his GBP372,000 bonus and his compensation was cut almost in half, following a lackluster performance by the U.K.'s biggest retailer, and Andrew Moss, chief executive of U.K. insurance group Aviva PLC (AV.LN), announced his resignation after shareholders rejected a proposed GBP2.69 million pay packet. The chief executives of AstraZeneca PLC (AZN.LN) and Trinity Mirror (TNI.LN) also quit after investors challenged their pay.
Write to Peter Evans at firstname.lastname@example.org
(END) Dow Jones Newswires
June 08, 2012 10:51 ET (14:51 GMT)
Copyright (c) 2012 Dow Jones & Company, Inc.