More than a third of Burberry shareholders have voted against a new directors' pay plan that could see the boss earn up to £12.2m.
At the luxury fashion group's annual general meeting (AGM) held on Wednesday, 35.4% of shareholder votes were against the directors' remuneration policy.
But the majority, 64.6%, voted in favor of the policy, meaning it got enough for approval.
However, this marks a significant proportion of shareholders who were resistant to the company's plans to introduce a new bonus scheme this year.
Under the plans, the CEO will have the opportunity to earn a performance stock award worth up to 300% of his base salary, in addition to an existing stock award worth up to 150%.
Burberry said this helps focus and reward bosses for executing its long-term strategy and improving its financial performance over the next three years.
He also said it goes some way toward matching what industry rivals pay their top executives.
It means chief executive Joshua Schulman has the chance to earn £9.5m provided he meets all performance targets and receives the maximum bonuses payable.
This rises to £12.2 million if Burberry's share price grows by 50%.
Following the AGM vote, Burberry acknowledged the proportion of investors who voted against the policy, but said it was notable that its “ten largest shareholders” were in favour.
“The board has undertaken a comprehensive consultation process in the run-up to the Annual General Meeting and will continue to engage with shareholders to understand and respond to their concerns,” the company said.
