Apple hand $68m 'golden hello' to ex-Burberry boss Angela Ahrendts
- Ms Ahrendts will receive 113,334 shares in Apple worth $600 each
- She joins Apple as senior vice president for retail and online stores
- Ahrendts will oversee Apple's 423 stores and its retail website
- She is credited with transforming Burberry into a global fashion powerhouse
By Ted Thornhill
05:05 EST, 7 May 2014
05:36 EST, 7 May 2014
Angela Ahrendts has scored a massive payday after taking taken up a senior role at Apple
Angela Ahrendts has landed one of the biggest ‘golden hellos’ in business history, with Apple welcoming her to her new role with a deal worth a staggering $68million (£40million).
Ahrendts is credited with turning Burberry’s fortunes around and while there became the first woman to top the City pay league in Britain with a total package of £16.9million ($28million) along with an 80 per cent staff discount and £25,000 ($40,000) Burberry clothing allowance.
She left Burberry last year after eight years in the job to run Apple’s 423 stores and its retail website – and her pay deal dwarfs her previous one.
Apple said she will receive 113,334 shares in the company worth $600 each, amounting to $68million, providing she hits her targets over the next four years, The Times reports.
CEO Tim Cook described her as 'wicked smart' when he announced her arrival to staff, the paper said.
Her shock departure from Burberry wiped nearly $910million (£536million) off Burberry’s value.
Ms Ahrendts, 53, transformed the brand over her tenure, and is credited with 'de-chavving' its image after its famous check became popular with minor celebrities and football fans.
The company, which has been transformed into a global luxury brand with a growing presence in emerging markets, revealed a 17 per cent growth in underlying retail sales in the six months to the end of September 2013.
The share prices later recovered some of their losses in early trading to be down 3.8 per cent at 1,524 pence at about 8am.
Ms Ahrendts joined Burberry in January 2006, and became chief executive six months later.
The company, whose models currently include Cara Delevingne and David and Victoria Beckham’s son Romeo, has been one of the best performers in the FTSE 100 under her leadership.
The mother-of-three, a committed Christian who reads the Bible every day, has spent the last two decades working her way up in the fashion industry after gaining a merchandising and marketing degree from Ball State University.
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Core role: Ahrendts will oversee Apple's stores and online retail site
Transition: Burberry's chief creative officer Christopher Bailey (right) took over as chief executive after Ms Ahrendts (left) left
She cut her teeth at less glamorous places like bra maker Warnaco and working-girl staple Liz Claiborne, where she spent eight years before moving to Britain.
Burberry chairman Sir John Peace said when she left: 'I want to thank Angela personally for building a great culture and leading the company through the incredible transformation over the last eight years.'
Ms Ahrendts' predecessor was former chief executive of electronics chain Dixons, John Browett, who lasted just six months in the job.
He left behind a pay packet worth $55million, saying that the job wasn't the right fit for him.
THE RISE AND RISE OF ANGELA AHRENDTS
American Angela Ahrendts spent 20
years working her way up to the top in the fashion industry after
gaining a merchandising and marketing degree from Ball State University.
53-year-old did her time at less glamorous places like bra maker
Warnaco and working-girl staple Liz Claiborne, where she spent eight
years before moving to Britain.
At one point she was working 80 hours a week.
She joined Burberry in January 2006 and became its chief executive in July that same year.
She is credited with 'de-chavving' Burberry, after its famous check had become popular with minor celebrities and football fans and was being widely counterfeited. It has subsequently been removed from the vast majority of the firm’s products.
Last year, she was the highest paid chief executive of any FTSE 100 company, the first woman to top that elite league table, with a total pay package of £16.9million.
While her basic salary was £1million, the largest chunk came from selling £11.9million of her shares in the firm, built up over several years. Her pay has dropped to £3.3million, including a basic salary of £1million and a bonus of £1.5million, according to the company’s annual report.
Ms Ahrendts is credited with 'de-chavving' Burberry, after its famous check had become popular with minor celebrities and football fans and was being widely counterfeited (file picture)
Model: The Burberry's models currently include Cara Delevingne (pictured at London Fashion Week last year) and David and Victoria Beckham's son Romeo
Increase: Burberry's retail revenue rose 17 per cent to £694 million pounds in the six months to September 2013. Pictured are models presenting creations by Christopher Bailey for Burberry Prorsum at London Fashion Week
Success: Ms Ahrendts spent more than seven years with Burberry, transforming it into a global luxury brand with a growing presence in emerging markets
New boss: Ms Ahrendts will report directly to Apple CEO Tim Cook in her new position as senior vice president for retail and online stores
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