Retailer Burberry has been slammed by U.K. Investment Association which has joined Institutional Shareholder Services (ISS) in voicing concern over the executive compensation.
Investment Association has issued an alert about the company, a source told Bloomberg. According to the person familiar with the matter, the alert focuses on an award to the company’s CEO Christopher Bailey and its CFO Julie Brown, as well as the performance conditions attached to Burberry’s long-term incentive plan.
Earlier this month, ISS urged investors to vote against Burberry’s report on compensation at the company’s annual meeting on July 13.
Burberry said in a statement that it is “actively listening to the concerns of shareholders and will continue to look into them.”
In January, Livermore Partners revealed a position in Burberry, and its managing director, David Neuhauser, said that the company was well-positioned to sell itself if management fails to improve shareholder value. Neuhauser told Bloomberg that cost-cutting initiatives were necessary at the company, and that if “it was unable to produce sustainable growth it would be prone to shareholder pressure for M&A”.
by Activist Insight