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Other Disclosures


Dame Carolyn McCall

4 April 2022

Further to the announcement by Burberry Group plc on 13 July 2021, Dame Carolyn McCall retired as a Non-Executive Director of the Company on 2 April 2022. Dame Carolyn McCall will receive payment of her usual non-executive directorship fees up to the point of stepping down on 2 April 2022, but will receive no further payments thereafter. She will not receive any payments for loss of office or otherwise in respect of her stepping down from the Board.

4 January 2022

The following information is provided in accordance with section 430(2B) of the Companies Act 2006.

Marco Gobbetti

Marco Gobbetti ceased to be a director of Burberry Group plc on 31 December 2021.

He was paid salary, allowances and pension and received contractual benefits up to his final date of employment, together with a payment in lieu of accrued but not taken holiday entitlement as at that date. In accordance with his service agreement, Burberry’s directors’ remuneration policy and/or the rules of the applicable incentive plans:

  • He is entitled to exercise an option over a maximum of 1,472 Burberry Group plc Ordinary Shares (Shares) with an exercise price of £15.62 per Share under the Burberry Group plc Sharesave Plan to the extent of savings made to the date of exercise. The option will lapse, to the extent not exercised, on 1 July 2022.
  • He will be provided with reasonable assistance to prepare and file his tax returns for the 2020/21 and 2021/22 financial years, being the relevant tax years during his employment.

All other unvested or unexercised awards granted to him under the Burberry share incentive plans will lapse on 31 December 2021, other than 23 Shares held for him under the all-employee Burberry Group plc Share Incentive Plan, retained for release to him on request.

He will not receive any other payment(s), including for loss of office, and will not receive any bonus in respect of FY 2021/22.

Full details will be disclosed in the Directors’ Remuneration Report in the Annual Report and Accounts for FY 2021/22, and for later years, as appropriate.

Marco Gobbetti will be required to hold Shares in Burberry Group plc until 31 December 2023 in accordance with Burberry’s post-employment shareholding guidelines. Further details will be provided in the Directors’ Remuneration Report in due course.

Information on Christopher Bailey’s 2014 Exceptional Award

Additional information on Performance Assessment for 2016/17 for the vesting of Tranche 1

The Remuneration Committee is making available the following information in addition to the disclosures on pages 100 to 101 of the 2016/17 Annual Report in relation to its assessment of performance at 50% for 2016/2017 for Christopher Bailey’s 2014 Exceptional Award.

As set out in the Annual Report, the Committee considered Christopher’s performance as Chief Creative Officer and CEO for the full financial year 2016/17 against a number of measurable criteria.  The table below sets out the performance criteria considered, associated commentary and the overall performance assessment for each element.  As a result of this assessment the Committee determined that a 50% performance achievement for 2016/17 was appropriate. 

The Remuneration Committee previously assessed performance at 85% in 2014/15 and 50% in 2015/16, and these assessments were supported by shareholders in those years.  Including the 50% in 2016/17 gives an overall vesting outcome of 61.7% of maximum for tranche 1 of this award based on annual assessment of performance over three years.

  Performance element (weighted equally, 25% each) Commentary  Performance Assessment for 2016/17 (of maximum for each element)
1. Strategic development

In May 2016 Burberry outlined its plans to accelerate its productivity and efficiency agenda, including a programme of action to deliver significant cost savings. These plans were built into the five key strategies. During the year the strategies have been embedded into the business and significant progress has been made against all of the objectives. Pages 33 to 46 of the strategic report (in the 2016/17 Annual Report) cover in detail what has been achieved during 2016/17 and the early results of this multi-year programme. 

As Chief Creative Officer and CEO, Christopher led the development of this strategy and its expected implementation in the year, and the Committee considered that this element of the criteria was fully delivered during the period.

25/25 (100%)
2. Financial performance

Adjusted PBT of £462m (down 21% underlying) was generated in 2016/17. This performance was in part impacted by actions to elevate the brand, including the rationalisation of distribution in several major markets (including Beauty) and also the benefits of the strategic cost saving programme. This is below the level of the CIP performance condition threshold of 5% growth.

Additionally, revenue of £2.8bn (down 2% underlying) was realised with retail outperforming at up 3% overall, negatively impacted by a substantial decline in US wholesale as actions were undertaken to reposition the brand and also by the planned licence expiry in Japan.

Given the outcomes, the Committee considered that no portion of the award in relation to financial performance should pay out.

0/25 (0%)
3. Personal contribution

Christopher continued to drive the business through this transitional period, whilst evolving the key strategies. He ensured that the senior executive team continued to be focused on both the delivery of the key strategies and the management of the business in a challenging economic climate. Furthermore, Christopher oversaw significant change across the senior team and embedded new executives and retained existing talent. 

Notwithstanding Christopher’s personal commitment throughout 2016/17, the Committee awarded a 60% outcome to this measure, again noting the level of financial performance.  

15/25 (60%)
4. Shareholder value 

The share price increased by 16% since Christopher’s appointment to Chief Creative and Chief Executive Officer on 1 May 2014 to 31 March 2017, and dividends for 2016/17 were 38.9p per share. This was an increase of 5% on 2015/16.

Overall Total Shareholder Return (‘TSR’) for Burberry for the three years to 31 March 2017 was 31.9% (as confirmed by Willis Towers Watson), which compared to an average TSR of 23.8% for our core luxury peers* and 24.3% for the FTSE 100.

While noting the above, the Committee awarded a 40% outcome to this measure as a result of the total level of financial performance realised.

* Boss, Coach, Ferragamo, Hermes, Kering, LVMH, Prada, Ralph Lauren, Richemont, Swatch, Tiffany, Tod’s.

10/25 (40%)
    Overall outcome 50/100 (50%)