Apple’s senior vice president of retail, Angela Ahrendts, out-earned the company’s chief executive officer in 2014. She earned a total of $73.4 million, while CEO Tim Cook earned $9.2 million. Her salary was a little over $411,000, and about $70 million of Ahrendt’s pay came from Apple shares.
Angela Ahrendts: A look at earnings
Cook’s salary rose from last year’s $1.4 million. Ahrendts is responsible for the operations and expansions of Apple retail stores. She currently maintains a focus on expanding the company’s presence in China. Before she joined Apple, she was chief executive officer of British fashion house Burberry.
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The company recently said the following about Ahrendt’s value to Apple: “In determining her transition package, the Compensation Committee considered Ms. Ahrendts’ compensation arrangement at Burberry and the amounts that she was expected to receive in future years. At the time, Ms. Ahrendts was among the highest paid executives in the UK and held unvested Burberry equity awards with a value of approximately $37m. She also received cash and perquisites from Burberry that exceeded $5m annually, which was significantly higher than the cash opportunities provided to the Company’s executive officers.”
Apple luxury retail experience proves big value
Ahrendts also received new hire compensation of $33 million when she was brought on board. She has visited many Apple retail stores since she joined. Late last year, she even shared a video message with others in the retail sector preparing them for the upcoming Apple Watch. She replaced Dixons John Browett, who held the same position for six months.
Apple’s retail stores are at the core of the company. It is important for the iPhone maker to expand and grow. China is a key market Apple can’t afford to miss. It’s necessary to establish a presence, and increasing the number of retail stores is the way to do that. Ahrendts’ experience in the luxury retail market gives her an advantage in boosting the company’s overall experience.