Speaking afterwards, the
"What we have to do is reflect on that and talk to shareholders," he said.
The vote on the remuneration report is non-binding but just over 16% of investors also voted against the company's remuneration policy at the company's annual general meeting in central
The 52% no vote is one of the biggest-ever protests staged by shareholders against boardroom pay. Insurer
In 2013, nearly 40% of investors failed to support a
Bailey, who succeeded long-serving chief executive
Pirc, which advised shareholders to vote against the company's remuneration policy, had cautioned that executive directors' incentive schemes were "excessive" as potential payouts could be as much as eight times base salary. The IMA, whose members manage £4.5tn of assets, issued an "amber top" alert over pay – its second most serious level of rebuke on corporate governance.
During the meeting, Peace explained that the share award was made to Bailey after a rival luxury goods company tried to poach him. "We are acutely aware that Christopher could command a much higher package outside the
The company has a history of rewarding its executives handsomely. Bailey's predecessor Ahrendts, who left to join Apple in May, was one of the highest paid chief executives in the
Investors have accepted the pay situation as the management team have been incredibly successful - Ahrendts and Bailey worked side by side for eight years. Last year adjusted pretax profits rose 8% to £461m while sales increased 17% to £2.3bn.
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