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Angela Ahrendts leaves Burberry for new job at Apple Angela Ahrendts leaves Burberry for new job at Apple
(about 1 hour later)
Angela Ahrendts, the chief executive who rescued Burberry, is leaving the fashion house for a new job at Apple, in a move that further depletes the ranks of female chief executives of FTSE 100 firms.Angela Ahrendts, the chief executive who rescued Burberry, is leaving the fashion house for a new job at Apple, in a move that further depletes the ranks of female chief executives of FTSE 100 firms.
Ahrendts joins Apple in spring 2014 to take up a newly created role overseeing the expansion of Apple's retail stores. She is being replaced at Burberry by Christopher Bailey, who will also keep his current post as chief creative officer.Ahrendts joins Apple in spring 2014 to take up a newly created role overseeing the expansion of Apple's retail stores. She is being replaced at Burberry by Christopher Bailey, who will also keep his current post as chief creative officer.
Her departure comes amid growing concern about the small number of female executives at the top of British business, and leaves just two women in charge of the largest UK-listed companies: Alison Cooper at Imperial Tobacco and Carolyn McCall of easyJet. Their number has been depleted by the departure of Marjorie Scardino from Pearson and Cynthia Carroll from Anglo American.Her departure comes amid growing concern about the small number of female executives at the top of British business, and leaves just two women in charge of the largest UK-listed companies: Alison Cooper at Imperial Tobacco and Carolyn McCall of easyJet. Their number has been depleted by the departure of Marjorie Scardino from Pearson and Cynthia Carroll from Anglo American.
Ahrendts, who was the highest paid chief executive in the FTSE last year with a total package worth £16.9m, said she was honoured to be joining Apple. Ahrendts, who was the highest-paid chief executive in the FTSE last year with a total package worth £16.9m, said she was honoured to be joining Apple.
She also paid tribute to colleagues, describing Burberry as a truly great company: "Burberry is in brilliant shape, having built the industry's most powerful management team, converted the business to a dynamic digital global retailer, created a world-class supply chain, state of the art technology infrastructure, sensational brand momentum and one of the most closely connected creative cultures in the world today." She also paid tribute to colleagues, describing Burberry as a truly great company: "Burberry is in brilliant shape, having built the industry's most powerful management team, converted the business to a dynamic digital global retailer [and] created a world-class supply chain, state of the art technology infrastructure, sensational brand momentum and one of the most closely connected creative cultures in the world today."
Bailey said he was moved and humbled to take on the CEO role. "Whilst I am sad no longer to have the inspirational leadership of Angela, who has been an absolute joy to work with, I feel more than confident that part of her legacy is an enormously strong team in all of our areas."Bailey said he was moved and humbled to take on the CEO role. "Whilst I am sad no longer to have the inspirational leadership of Angela, who has been an absolute joy to work with, I feel more than confident that part of her legacy is an enormously strong team in all of our areas."
Tim Cook, chief executive of Apple, said he was thrilled that Ahrendts would be joining his team. "She has shown herself to be an extraordinary leader throughout her career and has a proven track record."Tim Cook, chief executive of Apple, said he was thrilled that Ahrendts would be joining his team. "She has shown herself to be an extraordinary leader throughout her career and has a proven track record."
Shares in Burberry fell 5.5% at the start of trading, down 93p to £14.92.Shares in Burberry fell 5.5% at the start of trading, down 93p to £14.92.
Ahrendts is not the first fashion executive to join the ranks of the iPhone maker. Paul Deneve, the former chief executive officer of Yves St Laurent, was hired recently to work on special projects.Ahrendts is not the first fashion executive to join the ranks of the iPhone maker. Paul Deneve, the former chief executive officer of Yves St Laurent, was hired recently to work on special projects.
The announcement of her departure came as Burberry announced a 17% rise in revenues to £694m over the six months to the end of September. Sales in Burberry shops rose 13% on last year, driven by spending in Asia, Europe, the Middle East, India and Africa, and the Americas. The announcement of her departure came as Burberry announced a 17% rise in revenues to £694m over the six months to the end of September. Sales in Burberry shops rose 13% on last year, driven by spending in Asia, Europe, the Middle East, India and Africa and the Americas.
The company also reported high single-digit growth in mainland China, pleasing investors after last year's shock profit warning on the back of flagging spending from Chinese consumers. The chancellor, George Osborne, namechecked Burberry this week, along with Rolls-Royce, as he talked up British brands on a visit to China.The company also reported high single-digit growth in mainland China, pleasing investors after last year's shock profit warning on the back of flagging spending from Chinese consumers. The chancellor, George Osborne, namechecked Burberry this week, along with Rolls-Royce, as he talked up British brands on a visit to China.
Crucially for Apple, Ahrendts knows China. One of the world's largest markets, it has also proved the toughest to crack for Apple CEO Tim Cook. Burberry has 69 stores in China and last year 14% of its income came from there. Apple's retail sales, at almost $19bn a year, dwarfs Burberry's but still only represents 12% of the the iPhone maker's income. Crucially for Apple, Ahrendts knows China. One of the world's largest markets, it has also proved the toughest to crack for Apple's CEO, Tim Cook. Burberry has 69 stores in China, and last year 14% of its income came from there. Apple's retail sales, at almost $19bn a year, dwarf Burberry's but still only represents 12% of the iPhone maker's income.
Ahrendts joined the board in 2006, when she took over from fellow American Rose Marie Bravo, who had already begun the process of distancing the brand from downmarket associations and dealing with a flood of cheap fakes on the market. Ahrendts took the 157-year-old fashion house into new products from animal print scarves to own-brand cosmetics, as well as expanding its presence in the United States. Ahrendts joined the board in 2006, when she took over from her fellow American Rose Marie Bravo, who had already begun the process of distancing the brand from downmarket associations and started dealing with a flood of cheap fakes on the market. Ahrendts took the 157-year-old fashion house into new products, from animal-print scarves to own-brand cosmetics, and expanded its presence in the United States.
Bailey, a graduate of the Royal College of Art, has been at Burberry since 2001. He is credited with overseeing a canny social media strategy that has seen the company become the first big fashion house to stream its catwalk shows live over the internet, as well as launching the Art of the Trench website for fans of Burberry macs. The firm has said it has no plans to bring in a new creative director to work with Bailey.Bailey, a graduate of the Royal College of Art, has been at Burberry since 2001. He is credited with overseeing a canny social media strategy that has seen the company become the first big fashion house to stream its catwalk shows live over the internet, as well as launching the Art of the Trench website for fans of Burberry macs. The firm has said it has no plans to bring in a new creative director to work with Bailey.
Susan Vinnicombe, a professor of women and leadership at Cranfield School of Management, said the departure of Ahrendts was a huge loss for Burberry. "She has been tremendous as a CEO and a major champion of female talent. Angela is someone who has always paid attention to developing her female executives." Susan Vinnicombe, a professor of women and leadership at Cranfield School of Management, said the departure of Ahrendts was a huge loss for Burberry. "She has been tremendous as a CEO and a major champion of female talent. Angela is someone who has always paid attention to developing her female executives," said Vinnicombe.
Ahrendts included, Burberry has the highest percentage of women on its board of any FTSE 100 company, with three out of eight places around the boardroom table occupied by women. It is also the only FTSE 100 company with two women in the most senior executive roles, with Carol Fairweather as chief financial officer.Ahrendts included, Burberry has the highest percentage of women on its board of any FTSE 100 company, with three out of eight places around the boardroom table occupied by women. It is also the only FTSE 100 company with two women in the most senior executive roles, with Carol Fairweather as chief financial officer.
Heather Jackson, a campaigner for gender diversity in the boardroom, said: "The FTSE 100's loss is the Fortune 500's gain. Angela Ahrendts has shown what an incredible business leader she is, taking good companies into awesome companies. And Apple needs a businesswoman like that.Heather Jackson, a campaigner for gender diversity in the boardroom, said: "The FTSE 100's loss is the Fortune 500's gain. Angela Ahrendts has shown what an incredible business leader she is, taking good companies into awesome companies. And Apple needs a businesswoman like that.
"We should be celebrating the fact that a woman has gone into an incredible position," Jackson said, adding: "The best person got it on merit not tokenism." "We should be celebrating the fact that a woman has gone into an incredible position," Jackson said, adding: "The best person got it on merit, not tokenism."
The big problem, she said, was that so few women were eligible for the top jobs because for decades not enough talented women had been promoted through the ranks. "We can't right a wrong overnight. We have only got so many women eligible at this moment in time, so let's look to the future and make sure that there is more of them like Angela coming through."The big problem, she said, was that so few women were eligible for the top jobs because for decades not enough talented women had been promoted through the ranks. "We can't right a wrong overnight. We have only got so many women eligible at this moment in time, so let's look to the future and make sure that there is more of them like Angela coming through."
Richard Hunter at Hargreaves Lansdown stockbrokers said Ahrendts was leaving the company in good shape. "The shares have had a rocky ride yet have still managed to outperform the market strongly. Over the last year Burberry has added 41% to its price, as compared to a 12% hike for the wider FTSE 100." Richard Hunter, at Hargreaves Lansdown stockbrokers, said Ahrendts was leaving the company in good shape. "The shares have had a rocky ride yet have still managed to outperform the market strongly. Over the last year, Burberry has added 41% to its price, as compared to a 12% hike for the wider FTSE 100."
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