Shareholders of fashion house Burberry have voted in favour of a pay overhaul that will allow chief executive Joshua Schulman to get much larger share rewards, greatly increasing his compensation if performance and share price targets are met.

The vote did not pass without controversy, however, with 35 per cent of the votes at the company’s annual general meeting cast in opposition and 65 per cent in favour. A second resolution amending the rules of the Burberry Share Plan was supported by 63 per cent of shares, while 37 per cent went against it.

The new policy entitles Schulman to performance share awards worth up to 300 per cent of his salary, with total renumeration reaching £12.24 million if the brand is able to grow its shares by 50 per cent and achieve its maximum performance targets.

The change was first proposed in Burberry’s annual report in May as part of a package aimed at more closely aligning executive pay with the company’s long-term turnaround strategy.

Last year, Schulman received £4.02 million in total renumeration, already a 55 per cent increase on the year before.

Proxy advisory firms Institutional Shareholder Services and Glass Lewis both urged shareholders to vote against increased director renumeration prior to the meeting, citing concerns over the size of the package.

In response to the investor pushback, Burberry issued a statement saying it would continue to engage with those that did not support the changes in order to better understand their concerns. It added that it would provide an update on the matter within six months, as required by UK governance rules for any resolution with less than 80 per cent support.

The company said that both resolutions were supported by its 10 largest shareholders.

Schulman has overseen a major turnaround at Burberry, returning it to profitability last year after a £37 million loss in the financial year 2024/2025.

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