Burberry's CEO is receiving a 2,6 million bonus during the brand's layoffs Reducing the workforce to increase top salaries does not seem like a brilliant plan
Last May, Burberry announced it would cut as many as 1,700 jobs by 2027, as part of a strict but strategic plan to counter the luxury crisis that is slowing sales across the fashion industry. The news came alongside the brand’s financial results which, despite losses, showed signs of a slow but real economic recovery. The credit was given to the brand’s new CEO, Joshua Schulman, who took on the role in the summer of 2024, when Jonathan Akeroyd was dismissed from the position with immediate effect. Although the news of the job cuts at Burberry (which will take place across all sectors of the company, from offices to production) was somewhat expected given the difficulties the British brand is facing, it clashes with a new piece of information about the brand that has already sparked criticism: in the past nine months, new CEO Schulman has been paid nearly £2.6 million, and may receive additional bonuses if he meets targets set by the company’s top executives.
Beyond an astonishing salary, what has stirred controversy around the pay received by Burberry's new CEO are the reasons behind the total figure: £380,000 was allocated for his relocation, £135,000 for finding a new home, £120,000 for the move from New York, and five months of housing allowance already paid, according to the Guardian. Additionally, he could receive a further £25,000 per month in “housing allowance”, and if he manages to double the company’s stock value within three years, he will receive a £3.6 million bonus. On top of Schulman’s increases over the past nine months, last July the company also dismissed Akeroyd with £1.5 million. In short, while Burberry prepares to cut a large portion of its staff (representing 20% of the brand’s global workforce) after reporting losses of £66 million in one year, the brand’s current and former executives are doing just fine.
The contributions Burberry is making to Schulman demonstrate the high expectations the fashion house has for him. Since the CEO, previously hired from Coach, moved overseas, Burberry’s shares (which, let us remember, remains an independent company) have risen by 50%, despite this period coinciding with a general decline in luxury values following the announcement of Trump-era tariffs. In the company’s report regarding the new CEO’s compensation, Burberry’s management stated that they consulted with the brand’s shareholders about Schulman’s remuneration, who confirmed that the bonus would provide the CEO with the right support. That said, the news may shake the brand’s future, which is currently pursuing a creative direction heavily centered on British cultural heritage. All this patriotism, combined with the mass layoffs planned for the coming years and the generous salary allocated to the CEO, could backfire on the Blue Knight brand. One could say, in this case, there’s not much chivalry involved.
