His pay fell from £7.5m in the 2015 financial year, to £1.9m in 2016, according to Burberry's annual report.
The fashion brand has been hit by lower spending in key Asian markets such as Hong Kong, while Chinese tourists have been spending less in Europe.
Last month, Burberry reported a 10% fall in annual profits.
Over the past 12 months, the share price has dropped by 35%.
Last year - in better times - Mr Bailey earned more than £1.7m in bonus payments alone.
In 2016, his base salary remained flat at £1.1m, although it was boosted by £464,000 of allowances and pension payments of £330,000.
"Our overall approach to incentive structures for all staff, including senior management, is based on performance," said Burberry's chairman, John Peace.
"When the business does not perform as well, this has an impact on what we pay to our staff."