“A new financial filing shows that Apple made extraordinary financial offers to Sr. VP Angela Ahrendts last year, hoping she would quit her job at Burberry, move back to the United States and take control of the company’s most visible operations, the on-line and retail stores,” Gary Allen reports for ifoAppleStore. “At the time, Apple says that Ahrendts was among the highest-paid executives in the UK, and so they assembled a combination of Apple stock grants, an annual salary and bonus, relocation expenses and even an unusual severance package to lure her to the company.”
“Apple offered $33 million in ‘new hire’ stock grants to ‘encourage Ms. Ahrendts to join the Company and to provide her with a meaningful equity stake in the Company.’ Another $37 million in Apple stock grants were designated as ‘make whole’ shares, to compensate Ahrendts for Burberry stock she held, but had not yet vested,” Allen reports. “The new-hire grants were based on Apple’s traditional performance metrics and vest over several years. The make-whole grants were structured using Burberry’s metrics in effect at the time. Ahrendts was also offered a $1 million annual salary, and a $500,000 ‘hire-on’ bonus intended to offset some of the Burberry compensation she lost upon leaving that company.”
“The relocation expenses amounted to $457,615 — and Apple then paid Ahrendts another $323,903 to pay the taxes on the first amount,” Allen reports. “And lastly, perhaps recalling the short tenure and quick departure of Apple’s previous Sr. VP Retail John Browett, Apple offered Ahrendts a severance package.”
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