--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 peter.evans@dowjones.com