Burberry Group Plc appoints Jonathan Akeroyd as its new chief executive officer, tapping a proven turnaround expert to endure the trench coat maker’s push to become a top-tier luxury label.
A 54-year-old Briton, Akeroyd, had led the revival of Alexander McQueen before taking over at Versace, would join the British brand in April. He’ll succeed Marco Gobbetti, who is leaving to run Salvatore Ferragamo SpA.
Akeroyd would earn an annual salary of 1.1 million pounds ($1.5 million) plus bonuses, and would be granted cash and share payments worth about 6 million pounds for incentives he forfeits at Versace, Burberry said.
The appointment ends months of uncertainty at the 165-year-old group, which had been searching for a replacement for Gobbetti since June, when he announced his shock departure mid-way into a multi-year turnaround plan to take the brand further upmarket.
Akeroyd would take over in the midst of a turnaround at Burberry, with Gobbetti’s plan to elevate the label’s image showing progress but still incomplete. In the past, the fashion house was seen as a mid-market luxury brand, lacking the diversification of industry giant LVMH, whose products range from Louis Vuitton bags to Dom Perignon Champagne.
Shares in Burberry, which have extended losses since the announcement of Gobbetti’s departure and were trading down 19 percent on June levels. Burberry, known for its trench coats, trademark plaid and TB monogram, said Akeroyd, a 54-year-old Briton, was the right choice to build on its creative heritage.
“Jonathan is an experienced leader with a strong track record in building global luxury fashion brands and driving profitable growth,” Burberry Chair Gerry Murphy said.
Akeroyd accelerated growth during his five years at Italy’s Versace and oversaw the sale of the house, known for its opulent, ostentatious style, to US group Michael Kors, now known as Capri Holdings, in 2018.
Akeroyd, who ran Alexander McQueen from 2004 to 2016, led the brand through the turbulent period following the death of its eponymous founder in 2010, tapping Sarah Burton as creative director. The label got a public boost when Kate Middleton wore an Alexander McQueen dress for her wedding to Prince William the following year. Akeroyd also led an extensive store expansion.