Burberry's New Packaging

LONDON — Burberry’s two top executives took home millions in salary and bonuses in fiscal 2018-19, according to the brand’s annual report, which was released on Wednesday.

According to the report, Burberry chief executive officer Marco Gobbetti’s total remuneration for the fiscal year ended March 31, 2019 was 3.96 million pounds.

That figure was comprised of 1.6 million pounds in fixed pay, including salary, benefits and pension; a 1.3 pounds bonus, and 1 million pounds in long-term share awards, known as the executive share plan.

Julie Brown, who serves as chief operating and financial officer, saw her total remuneration reach 2 million pounds, comprised of 996,000 pounds in fixed pay, including salary, benefits and pension; a 853,000 pounds bonus; and 152,000 pounds in long-term share awards.

When Gobbetti took over the role of ceo, he set out his five-year vision for the company, forecasting two years of flat revenue growth and adjusted operating margin.

As part of the five-year plan, revenue growth is set to ramp up into the high-single-digits  — higher than the 4 to 5 percent Bain has projected for the sector in the medium term — with “meaningful” operating margin expansion.

The annual report pointed out that the performance targets for the bonus were set by Burberry’s remuneration committee at the start of the year to be “stretching against a backdrop of profit growth that was anticipated to be broadly stable in the context of the first phase of our strategic plan.”

Burberry said the committee considered the bonus and executive share plan outcomes to be a fair reflection of the work achieved during the year.

Neither Gobbetti’s nor Brown’s bonuses or share awards were paid out at maximum rates set out for the year.

As reported, revenue in fiscal 2019 was 2.72 billion pounds, broadly flat against last year, while adjusted operating profit margin remained relatively steady at 16.1 percent, in line with Gobbetti’s broader strategy.

Stripping out the impact of the beauty wholesale business, now a license with Coty Inc., revenue was up 2 percent at reported and constant exchange rates.