Well that trumps the bonus she would've gotten from Burberry for staying through the summer. Well played.
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New Retail SVP Angela Ahrendts Receives Signing Bonus Worth $68 Million
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Instead of ridiculous bonus sums, why not increase the hourly wage for your hard working retail employees, Apple.
Well, billy gates from a dropout to worth $40bln + and many more. cheers!
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They could have just spent that on a computer to make those decisions, it would do a better job then she can.
I think your understanding of the economy is as bad as your understanding of apostrophes.
That's not the only reason. The other is that she receives $1.5m a year in dividends on which she is taxed at the flat rate of 10%, even if her RSUs never vest.
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In which case they'd be worth a paltry $64m. I think most people would happily take that kind of SOL.
Note these are RSUs, not options. There's a big difference. Also note the huge tax benefit of part of her compensation being paid out in dividends.
No one is worth that kind of cash as a starting bonus. Regular people, usually needs to prove anything at all before getting anything at all.
But, then again. Apple needs good people more than cash. and they haven´t been able to fill that role for more than a year. And when you see how big of a f´up John Browett was. He didn´t even understand what is important for apple and trying to squeeze in every corner of their retails just to earn a few lousy extra bucks....It would seem its difficult to come across someone that actually understands apples values and at the same time has experience in managing retail. ....so if she works, Im sure she is worth it for apple.
But, then again. Apple needs good people more than cash. and they haven´t been able to fill that role for more than a year. And when you see how big of a f´up John Browett was. He didn´t even understand what is important for apple and trying to squeeze in every corner of their retails just to earn a few lousy extra bucks....It would seem its difficult to come across someone that actually understands apples values and at the same time has experience in managing retail. ....so if she works, Im sure she is worth it for apple.
68million in stock is now considered bad? I think it's only fair execs get stock and a livable wage. This encourages performance. Its only worth 68million if the stock price isnt headed downward. Plus I'm sure there are all kinds of attachments in order for her to realize the full 68million in stock.
I know $68m is a ridiculous amount of money, and perhaps no one person *should* be worth that much, but the fact of the matter is that Apple is a $500 billion company that has generated around $36 billion in earnings over the past four quarters. If she has ideas that even marginally improve Apple's competitive position in retail, the company will earn back many times that $68m in additional profit over the next few years. The way she turned Burberry around was quite impressive, so it's certainly within the realm of possibility that she could help Apple.
Speaking as an AAPL shareholder (albeit one who owns far less than 1% of the shares that Ahrendts will get in this RSU grant), I think Tim Cook and the board have earned the right to be given the benefit of the doubt on these business decisions. When you buy an Apple product, you typically are paying a premium for quality. It shouldn't be a surprise that the company takes the same approach to hiring its management team.
Speaking as an AAPL shareholder (albeit one who owns far less than 1% of the shares that Ahrendts will get in this RSU grant), I think Tim Cook and the board have earned the right to be given the benefit of the doubt on these business decisions. When you buy an Apple product, you typically are paying a premium for quality. It shouldn't be a surprise that the company takes the same approach to hiring its management team.
Market value is different to actual worth. Market worth is objective and is determined at what the market will pay for something. Actual worth though is subjective. Something can be over priced cause of demand (or other factors).
Is she (or anyone) really worth that much money? Probably not, but if people (ie Apple in this case) are willing to pay it to her, she (or anyone) would be silly to say no.
People seem to think basketball players are worth similar amounts. A direct result of a supply-and-demand-based free market system. Definitely not perfect, but far more preferable than the alternative.
It’s without a doubt a lot of money, but is she worth it? And is anyone worth that amount of money?
In stead of reasoning this from a point of “what a person needs in life and how that compares to your own salary” like many here do, it makes more sense to look at this from what the person generates in value and how much that is worth to Apple.
Ahrendts will start at Apple with a package of objectives of which the complexity will make many people dizzy. She will absolutely have goals that indicate the increase of profit per square meter by a certain margin, Apple store market entry in certain regions, upgrade of low-performing stores, negotiating high-profile locations for country flagship stores, increasing employee efficiency, and increasing customer satisfaction. All of these goals are very easily measurable and none of these goals will be to “keep everything as it is”. That’s also why the bonus is vested, to ensure that changes she makes will have a result and that she also stays on to fully implement her vision.
The impact will be easy to calculate. If Ahrendts succeeds in generating a sustainable increase in profit per square meter that adds a few hundreds of million per quarter to Apple’s bottom line, then hell yeah she is worth it. Her bonus compared to that is a drop in the ocean.
This might not make sense for most people that have a normal job, but for this position the value that is created for the organization can be directly measured and thus it is quite easy to estimate whether anyone “is worth the money” for this job.
In stead of reasoning this from a point of “what a person needs in life and how that compares to your own salary” like many here do, it makes more sense to look at this from what the person generates in value and how much that is worth to Apple.
Ahrendts will start at Apple with a package of objectives of which the complexity will make many people dizzy. She will absolutely have goals that indicate the increase of profit per square meter by a certain margin, Apple store market entry in certain regions, upgrade of low-performing stores, negotiating high-profile locations for country flagship stores, increasing employee efficiency, and increasing customer satisfaction. All of these goals are very easily measurable and none of these goals will be to “keep everything as it is”. That’s also why the bonus is vested, to ensure that changes she makes will have a result and that she also stays on to fully implement her vision.
The impact will be easy to calculate. If Ahrendts succeeds in generating a sustainable increase in profit per square meter that adds a few hundreds of million per quarter to Apple’s bottom line, then hell yeah she is worth it. Her bonus compared to that is a drop in the ocean.
This might not make sense for most people that have a normal job, but for this position the value that is created for the organization can be directly measured and thus it is quite easy to estimate whether anyone “is worth the money” for this job.
Apple doesn't own Foxconn.
Do you run off and pay the salary of the grocers you buy your food from?
What is with all this unfounded hate?
Do you know this woman? Did you work for her?
She did a 180 with a sinking Burberry so obviously she is good at the retail game for higher priced items.
I don't get why everyone on this thread is bashing her when they haven't seen her even do anything yet.