Burberry's CEO could receive a lucrative bonus if the fashion label re-enters the FTSE 100 index.
New Burberry CEO’s Bonus Linked to Company's Share Price and FTSE 100 Re-entry
Burberry's newly appointed CEO, Joshua Schulman, could receive a substantial bonus if the fashion label's shares surge, and the company re-enters the FTSE 100.
Schulman, who succeeded Jonathan Akeroyd in July 2022, is eligible for a bonus worth 300 percent of his base salary, according to the brand's annual report. This incentive would amount to millions if the maximum target is attained.
The performance-based bonus is designed to encourage Schulman to lead Burberry back to the London Stock Exchange's blue-chip index. The targets for this award are directly linked to shareholder value creation and Burberry's total shareholder return (TSR) performance. For instance, the maximum target requires the company's share price to more than double, a feat that would likely result in Burberry returning to the FTSE 100.
The compensation committee expects that achieving this level of TSR performance would represent upper-decile performance within the FTSE 350 and its luxury peers. If these targets are met, the achievement would signify the positive direction of the Burberry Forward strategy under Schulman's leadership.
Apart from the performance-based bonus, Schulman stands to earn a maximum annual bonus of 200 percent of his salary and an annual Burberry Share Plan (BSP) award of 162.5 percent of his salary. The new CEO garnered an annual bonus of £1.2m due to his "excellent progress" since he took over.
However, Burberry has faced challenges in its financial performance. The brand's revenue dropped from £2.96bn to £2.46bn in the year to March 2025, and it posted a pre-tax loss of £66m for the same period. Burberry also announced plans to cut almost a fifth of its staff, or 1,700 jobs, in the next two years.
In the annual report, Remuneration Committee Chair Danuta Gray explained that the remuneration package was structured to attract a CEO of Schulman's caliber from the competitive US talent market. The compensation is designed to incentivize the CEO to achieve growth in Burberry's share price and navigate the company through its current challenges to set the foundation for future success.
Investing wisely in Burberry's shares could significantly benefit Joshua Schulman, as a large portion of his bonus is linked to the company's share price and FTSE 100 re-entry. Pursuing the Burberry Forward strategy under Schulman's leadership, the new CEO is incentivized to create shareholder value and propel the company towards growth in the business sector.
