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After the departure of Angela Ahrendts of Burbrry last October ( I was listing music on mp3lio ), the company announced that it Christopher Bailey, creative director of the brand, replaced in office and collate and both responsibilities. The news represents an unprecedented; to date no creative director had come to have so much power of decision in a luxury brand Burberry the scale.
The announcement did think that Bailey would have taken advantage Ahrendts well off. That he left it was also something that could not afford Burberry and that positioned him in a situation of clear negotiating advantage. His arrival to ambitious CEO position has logic on that stage.
Bailey has been released in May in its dual task and in this time has been able to negotiate a substantial improvement in their income, approved by the Board of Directors of the company, and includes the following:
- An annual salary of 10 million pounds
- Pension Plan
- A Variable bonus linked to results
- 20 million pounds if it continues at Burberry in 2018, and
- A bonus for the premiere in his position as CEO of the company 500,000 shares, currently worth about 7.3 million pounds.
The news came last July 10: After a tense annual meeting of the company, 52.7% of shareholders said no to this “welcome bonus”. The Board justified this proposal arguing that the single payment was required to address offers from other companies that Bailey might be getting and remembering that Ahrendts was signed by Apple for the extraordinary sum of 60 million dollars, “a figure that we do not are able to match, “said the company.
Despite this refusal, it seems that the remaining points were as negotiated. That is, Bailey has substantially improved its position, both economically (though not in the expected total sum), and capacity of influence by their new situation in the strategic decisions of the company.
All these facts since leaving Ahrendts raise interesting readings, ignoring those that affect Apple and the thin line that separates today the concepts of fashion and technology.
One of the questions is: Bailey deserves these figures and the famous bonus for being CEO or continue to be the creative director of Burberry ? Which brings us to the key question: How today is worth a creative director for a luxury brand? According to a study by the Business of Fashion, this profile is the most difficult to find, “about 70% of luxury companies have serious problems with these searches.”
It makes sense. After the creative director is responsible for getting this piece, with such features of shape, color … become a bestseller and see it to know well in advance so that nobody on with something. The qualities needed to do this are a compendium of virtues similar to those of artists -the fashion is an eminently creatively discipline but also requires large doses of market knowledge and psychology to know how to generate that moment in which the consumers say what I want. All these agglutinated talents are given in very few, that is, the creative director is a very scarce commodity whose price is marked by the binomial need-scarcity. Do not forget to visit http://mp3lio.org/ lovely website.
Another issue is: That generating capacity of successful pieces by a creative director is sustainable over time? Do not you exhausted?
Burberry economic figures last year are interesting in this regard: net profit has improved by 26.82%, but it seems that the positive numbers do not come by margin improvement in operations, but for other reasons. This and experts, expectations of appreciation of the pound in the currency market, explain the wisdom of the shareholders not to pay more Burberry Bailey to say welcome .
That is, a shareholder might be thinking that itself could have signs of exhaustion and would have to wait and see to what extent the breakdown of the Bailey-Adherents team affects the ability of commercial success of the proposals of the designer. Or put another way, he Will Bailey capable of facing all without the strategic vision of Adherents?
It is also true that not backed by almost 53% of shareholders is not a non – overwhelming and means that the views were truly divided on this forward gratification. In any case, it is not with all the consequences, but shows that 47% of the shares itself Bailey thinks he deserved.And not a small percentage, which makes one suspect that within a year, that amount, it would obviously welcome, but could become a yes for Happy Birthday .
The turn depend on Bailey get better results at that time, ie, that proves that his talent shows no signs of fatigue and remains the person with the art necessary to give the turns it takes the famous trench lining picture. And of course, he wants to do, and do not accept any of these offers, according to the Board of Burberry , may be condolence. The successive months and the supply and demand Bailey finally define what counts.