LONDON (AP) — Burberry CEO Christopher Bailey has taken a 75 percent pay cut after the luxury retailer failed to hit profit targets amid a challenging global environment, including a slowdown in the Chinese economy.
The company's annual report released Monday says that Bailey will be paid 1.9 million pounds ($2.75 million), down from 7.5 million pounds the previous year. He and other top executive directors received no bonuses as adjusted profit before tax "was below the threshold target set by the Remuneration Committee."
A slowdown in Chinese consumer spending and a sluggish eurozone economy, together with geopolitical tensions and volatile financial markets, hit the sector hard, with growth of between 1 percent and 2 percent, from 7 percent just two years ago.
"Given the shape of Burberry's global footprint, these negative trends had a disproportionate impact on our business during the year, and this was reflected in our overall financial performance," he said.
Revenue for the year ending March 31 fell 1 percent to 2.5 billion pounds, while net profit fell to 310 million pounds from 336 million pounds a year earlier, the company said in the report.
The company plans at least 100 million pounds in cost-cutting by the fiscal year 2019.