Burberry’s proposed new remuneration policy for its directors, which includes a potential pay package of up to £12.2 million for Chief Executive Joshua Schulman, received majority backing at the company’s annual general meeting on Wednesday, despite significant opposition from shareholders.

The vote saw 64.6 percent of shareholders support the plan, allowing it to pass, while 35.4 percent voted against it. This dissent highlights notable resistance among investors to the company’s proposed changes in executive compensation, particularly the introduction of a new bonus scheme.

Under the revised policy, Schulman would be eligible for a performance share award valued at up to 300 percent of his base salary, in addition to an existing share award capped at 150 percent of his base pay. The changes mean the chief executive’s total potential remuneration could considerably increase, reflecting the company’s performance-based incentive structure.

Following the vote, Burberry acknowledged the considerable minority opposing the pay plan but emphasised that its 10 largest shareholders had supported the proposals. The luxury fashion group did not disclose the specific identities of these major investors but suggested their backing lent weight to the policy’s approval.

The opposition from over one-third of shareholders reflects ongoing debates about executive pay levels and the structure of incentives in the luxury retail sector. While supporters argue that performance-based awards align directors’ interests with long-term company success, critics often raise concerns about excessive compensation and its impact on corporate governance.

Burberry’s decision to press ahead with the new remuneration framework signals the group’s confidence in its leadership and strategy, despite shareholder reservations voiced through the vote. The company’s broader financial outlook and market position may also shape investor attitudes towards executive pay in the coming months.