Burberry is facing a potential shareholder revolt over the outrageous retention reward being given to Angela Ahrendts. Burberry is the biggest luxury goods maker in Britain but it shall have problems explaining a retention reward of 500,000 shares worth 7.3 million pounds.
Burberry will have to pay Angela this amount in case she hits certain targets and sticks to the company till 2016. This reward will be in addition to her 3.5 million pound pay package and her 80% discount on all Burberry products. She is already reputed as one of the best paid female executives in UK as she receives a 485,000 pound allowance to cover expenses for living abroad, school fees and clothes.
The company cleared the air after this move by stating that it just wanted to lock the Chief executive for the next 5 years. Angela Ahrendts has played a mammoth role in the revival of Burberry to a popular brand with the 'chav' generation.
The Association of British Insurers intends to show the possible corporate governance breaches by Burberry in the resolutions which require shareholder approval. PIRC, another advisor for investors said that the investors should oppose the move since the retention reward was around 584% of her base salary.

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