Burberry’s new CEO will earn a total £15 million this year alone. Now, it is already hard to imagine how one person can earn this much money, and a lot harder to understand why.
The posh brand’s decision to pay an exorbitant salary to its CEO comes after years of closing down factories in the UK and moving to China where production costs are cheaper.
It’s business as usual for corporations prioritizing CEO pay over jobs -- but we have a chance to change this.
Burberry’s shareholders have a chance to reject CEO pay at their annual general meeting in July 11th ask shareholders to vote NO on CEO pay!
Christopher Bailey, Burberry’s new CEO is set to earn a salary £1.1 million, a bonus of £2.2 million and 500,000 shares of the company worth £4 million and “cash stipend” for £440,000 for his personal expenses.
Burberry’s brand has been marketed as a luxury brand, only to be accessed by the elite. But in 2007 Burberry shut down its UK factories and moved them to China, shifting the cost of a shirt from £11 to £4.
But why is a company that consistently makes profits from its lavish items cutting jobs and putting thousands in unemployment? The same usual reasons: to line the pockets of its CEO.
Not only is CEO pay getting out of hand but it goes hand in hand with profits going to the top of corporations and very little trickling down to workers wherever they may be. It’s time to put an end to this.
For more information:
Fashion's coolest look: Burberry's Bailey gets £15m just for being there, The Guardian, June 6th 2014
Burberry share price: Fashion retailer awards CEO lucrative pay deal, Invezz, June 6th 2014