Burberry directors increase share purchases after remuneration policy changes

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Burberry directors boost share ownership

Highlights

Burberry increased CEO Josh Schulman's and CFO Kate Ferry's base pay by 3% from July 1, to £1.24 million and £695,250 respectively, while tightening executive shareholding requirements.
Schulman purchased 56,936 shares at 1,089 pence for £620,033 and Ferry acquired 32,026 shares for £348,763, aligning with revised remuneration and reinvestment policies.
Burberry posted its first operating profit under Schulman in May after last year's £3 million loss, but full-year 2026 sales are slightly down and no 2027 guidance was given.

Remuneration changes and insider buying

As reported by Financial Times, Burberry has raised the salary of Josh Schulman and chief financial officer Kate Ferry by 3 per cent from July 1, taking their pay to £1.24 million and £695,250 respectively, while also tightening shareholding rules for top executives.

Under the revised director remuneration policy, Schulman is now expected to hold shares worth 400 per cent of his salary, up from 300 per cent previously. Ferry's threshold remains at 300 per cent, and the changes sit alongside Burberry's existing annual bonus framework, which requires executive directors to reinvest 50 per cent of any net bonus into Burberry stock.

That structure helps explain recent purchases by the two executives. Schulman buys 56,936 shares at 1,089 pence each for a total investment of £620,033, while Ferry buys 32,026 shares at the same price, spending £348,763.

Turnaround progress and market context

Burberry has spent the past 18 months implementing Schulman's "Burberry Forward" turnaround strategy as it approaches two years under his leadership. The programme has lowered borrowing, improved free cash flow and helped the group return to the FTSE 100.

The company also posts its first operating profit under Schulman in May, after reporting a £3 million loss a year earlier. Even so, the recovery remains incomplete, with full-year 2026 sales down slightly and no guidance issued for the 2027 financial year.

The board's decision to lift pay and reinforce equity ownership signals confidence in the direction of the recovery while tying senior management more closely to Burberry's share performance. For investors, the moves suggest the company is using compensation policy to support longer-term execution in a still fragile luxury retail environment.

Our earlier update on the UK market close covered the FTSE 100 edging higher, supported by gains in financials and precious metals miners as softer U.S. jobs data lifted gold prices. We also noted that investors were weighing shifting Bank of England rate expectations alongside signs of weakening UK services activity and persistent cost pressures.

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