Angela Ahrendts, the chief executive of fashion label Burberry, has seen her annual take home pay drop by £10m, only days after being named as Britain’s best paid boss.
Ahrendts’ £16.9m total pay package in 2012 saw her leapfrog to the top of the FTSE 100 pay league, but her 2013 pay dropped to £6.8m after she decided not to cash in as many bonus shares.
Her basic salary increased by 3.5% to £1.06m, on top of which she collected a £1.5m bonus, £256,000 cash in lieu of pension and other perks worth £439,000.
The perks include a £25,000 annual clothing allowance on top of her 80% staff discount, a car and driver and help towards her children’s school fees.
Ahrendts also cashed in £3.5m of previously awarded bonus shares. Her total take home pay was significantly lower than in 2012 because last year she cashed in £11.9m of shares.
She is in line to collect £6.7m of additional bonus shares in 2015 if the company hits a string of targets. The 500,000 share options were granted to Ahrendts in 2010, but are dependent on her continued “outstanding leadership”.
A Burberry spokesman said: “Under the leadership of Angela Ahrendts and her senior team, Burberry has generated exceptional returns for shareholders in a period characterised by economic turbulence. Burberry continued this growth in 2012/13, delivering another year of record revenue and profit for shareholders. Adjusted earnings per share increased 14% and the full year dividend has been raised by 16%.”