Bravo poised for Burberry windfall

BURBERRY'S chief executive Rose Marie Bravo is in line for a windfall of more than £10m, if the float gets off to a good start. GUS, which owns the luxury fashion brand, will today unveil details of a bumper package that will make Bravo the most highly paid female boss of a quoted British company.

The 51-year old Italian-American already earns about £2m in salary and bonuses each year. The glamorous New Yorker is also paid a clothing allowance of more than £10,000. But these amounts will be dwarfed by the shares and options award that GUS has agreed to give her when Burberry floats. Some argue it is a price worth paying, but the package will inevitably raise questions about excessive executive rewards.

When Bravo was poached from US department store Saks Fifth Avenue in 1997, Burberry was estimated to be worth just £200m. Now it is worth more than £1bn, with £500m annual sales. Bravo is credited with revamping the brand, now worn by the likes of Madonna and supermodel Kate Moss.

GUS chief executive John Peace will today defend the award and announce the price range for Burberry shares. The retailer, which also owns Argos, is floating about 25% of Burberry. It is valued at £1.2bn to £1.5bn, though analysts reckon it will be priced at the lower end of the range.

Bravo gets a large chunk of shares immediately, but her option award will be based around a longterm incentive plan which depends on the performance of the group.