Burberry chief executive Joshua Schulman could earn up to £12.2 million in the current financial year under a remuneration package tied to the luxury fashion group’s future performance.

According to Burberry’s latest annual report, Schulman received £4 million in compensation for the year ended March 2025. The package included a £1.2 million salary, a £2.3 million annual cash bonus, £120,000 in pension contributions, and approximately £370,000 in allowances and benefits, including relocation costs from New York to London.

Schulman, who took over as chief executive in July 2024, had previously received £2.5 million for his first nine months in the role. Under the new compensation structure, his base salary will increase by 3 percent to £1.24 million from July. The package also includes annual bonuses and long-term share awards, some of which are subject to performance conditions and will not vest for three years.

Burberry said the remuneration arrangements were designed to incentivise performance, support retention, and remain appropriate for a UK-listed company. The company noted that the potential awards remain below levels commonly available at comparable US luxury fashion businesses.

The remuneration committee stated that it had taken shareholder feedback into account and reduced one element of Schulman’s share-based award from 162.5 percent of salary to 150 percent.

Since assuming leadership, Schulman has focused on strengthening Burberry’s core product categories, including its signature trench coats, scarves, and outerwear. The company has also increased marketing efforts aimed at younger consumers, particularly Generation Z customers.

Earlier this month, Schulman described the past year as a significant turning point for the company, saying its strategy was helping attract a new generation of shoppers.

Burberry reported a profit of £49 million for the year ended March 2025, compared with a loss of £66 million in the previous year, marking a return to profitability.

However, the company continues to face challenges from weaker demand in the luxury goods sector. Burberry reported that sales in its Europe, Middle East and Africa division fell 2 percent in the three months to March 28, citing reduced tourist activity and the impact of ongoing conflict in the Middle East.