Burberry lets go its now former CEO with immediate effect

Burberry has announced today the appointment of Joshua Schulman as the new CEO, replacing Jonathan Akeroyd, who is leaving the brand with immediate effect by mutual agreement with the board of directors. Schulman, 52, has taken on the role immediately, taking the helm of the brand at a very difficult historical juncture: on one hand, there is the brand's own crisis, lagging behind on numerous economic growth targets and needing a strategy review; on the other hand, there is the state of English fashion, penalized by the abolition of duty-free shopping for tourists; and finally, there is the global slowdown in luxury consumption. A key detail: Schulman's previous roles were at Michael Kors and Coach, two American brands often cited as a blueprint to follow in the field of more accessible luxury, which has made, especially the latter in recent years, a very profitable business. If Burberry decides to correct its strategy of moving towards ultra-luxury to become the English version of Coach or even Ralph Lauren, perhaps recovering the division into lines, it could have serious growth opportunities given its very high recognizability.

At Coach, Schulman was president of the brand and played a crucial role in multiplying its revenues, repositioning it intelligently in the market. Schulman was also president of Bergdorf Goodman for five years, gaining expertise in the mechanisms of the commercial fashion market and its dynamics. From 2007 to 2012, Schulman served as CEO of Jimmy Choo in London, while in the past he held key roles at Yves Saint Laurent as executive vice president of global sales and merchandising and at Gucci as worldwide director of women's ready-to-wear. His salary has also been revealed: £1,200,000 per year, with a potential bonus of 100% of the salary, with a maximum of 200% of the salary if he meets his goals. Additionally, he will receive a Burberry stock plan award equal to 162.5% of his salary. In contrast, Akeroyd will not be eligible for a bonus for the current financial year, and all unvested share awards will lapse completely. Even though Akeroyd's departure might seem like a walk of shame, with immediate dismissal and no bonus, the brand's chairman Gerry Murphy acknowledged him by saying: “I would like to take this opportunity to thank Jonathan Akeroyd for the contribution he has made to Burberry. Jonathan has set out a clear strategy for growth that we will build on.”