Christopher Bailey gets 440k a year from Burberry just to pay for his clothes (and some other things)

Alright, so his 7.6m quid golden hello isn't quite the same as the $68m his former boss is getting from Apple - but it's pretty sweet.

by Emma Haslett
Last Updated: 07 Jul 2014

Details of new chief executive Christopher Bailey’s pay packet have been leaked – and it’s juicy stuff. Bailey’s £8.1m pay packet includes a £440,000 annual allowance for clothing and other items, according to The Guardian.

Bailey, who until the beginning of this month was the brand’s creative director, and is credited with helping to transform it from the darling of Z-list soap stars to one of the UK’s most successful fashion exports, will also get a golden hello in the form of shares worth £4.4m.

But it’s that clothing allowance that’s going to rile investors. Originally, his predecessor Angela Ahrendts was given £387,000 a year to cover her move from the US, and was designed to cover accommodation, travel and school fees ‘for a period of no longer than five years’. Not only is Bailey’s allowance £53,000 more, but there’s no limit to how long it’ll be doled out for. And – lest we forget – senior managers at Burberry already get an 80% discount on Burberry clothes. That’s a lot of macs he can afford.

Bailey will also get a £1.1m salary and £330,000 in pension contributions – although, to be fair to him, he has already suggested that 10% of his salary after tax will be donated to The Burberry Foundation, a charity that supports disadvantaged young people.

Brand Bailey also gets a mention: in the contract, Burberry says it will ‘co-operate with the executive to… take reasonable measures to protect the name "Christopher Bailey" as a trademark and within internet domain names to its expense’, while Bailey promises to use aforementioned name to help publicise Burberry. It’s a sign of the times when executives’ personal brands get their own clauses in a contract.

Any upset shareholders can at least take solace in the fact that Bailey’s deal is nowhere near as sweet as Ahrendt’s new arrangement: last week it was revealed that she’ll get $68m in Apple shares, spread over four years, just for staying in her new job as the tech company’s senior vice president of retail and online stores. That’s what we call having your (Apple) cake and eating it.

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