Bailey's total pay tots up to £1.9m for the year to 31 March, down from £7.5m, according to Burberry's annual report.
While his salary and benefits remain flat, he will not receive a bonus or performance-related pay, due to the company's pre-tax profit coming in "below the threshold target" set by its remuneration committee at the start of the year.
Along with his £1.1m salary, Bailey will receive £464,000 in benefits and allowances and £330,000 in pension payments.
Other senior executives at the company, including chief financial officer Carol Fairweather and chief operating officer John Smith, also saw significant pay cuts.
The news comes after lacklustre annual results for Burberry, which reported a 10% profit drop to £421m, on flat revenues of £2.5bn.
The company has been particularly hit by a slowdown in key markets such as Hong Kong, and declining numbers of wealthy Chinese tourists to Europe in the wake of the Paris terror attacks in November.
Burberry has embarked on a £100m cost-cutting drive by 2019, with £20m of those savings planned for 2017.