August M
As Burberry pushes back its environmental goals by a decade, chief executive Joshua Schulman is in line for a massive financial reward under a new bonus scheme.
Corporate leaders often face a delicate balancing act between driving profits and upholding environmental commitments. When a major company adjusts its strategy, the financial incentives offered to its top executives can sometimes draw just as much attention as the shifting corporate priorities.
A lucrative package
According to Retail Gazette, Joshua Schulman joined Burberry in July 2024. The American executive previously led the fashion label Coach, and his compensation at the British heritage brand has grown significantly since his arrival.
In the year leading up to March, he received a total package of £4 million. This figure included his basic pay, an annual cash bonus, and financial support for his relocation from New York.
Starting in July, his base salary will increase by three percent. He will also become eligible for a new long-term share award, provided he successfully hits specific performance goals.
Stretching targets
If the company achieves major financial milestones, Schulman could earn up to £12.2 million over three years. This maximum payout requires growing annual revenues to £3.1 billion by 2029 and increasing the share price by 50 percent.
Burberry stated his target pay is £6.4 million. This places him near the top of executive earnings in the UK, but remains lower than his global luxury peers.
Danuta Gray, the chair of the company’s remuneration committee, defended the new reward structure. She explained it was designed to be “appropriately incentivising” and to help retain top leadership.
The retailer emphasized that any major payout would depend heavily on the delivery of “stretching performance targets”.
Changing direction
The financial rewards come as the company continues a major turnaround effort. Burberry recently reported a return to profitability, posting pre-tax profits of £49 million after a difficult previous year.
While the financial outlook improves, the brand has decided to push back its carbon neutral deadline by a full decade to 2050. This marks a clear shift from the ambitious climate pledges set by the previous leadership team.
The company described the revised targets as a “pragmatic response to external factors” in its annual report. Burberry now joins other major corporations, including BP and Unilever, in softening environmental goals during challenging economic times.
Sources: Retail Gazette, Burberry
