Sunday 20 May 2018

Revealed: The tens of millions of dollars earned by the top women in tech

Although dominated by men, the upper echelons of the tech sector have female high earners. Madeline McMahon looks at their salaries, perks and bonuses

Angela Ahrendts
Angela Ahrendts
Marissa Mayer, president and chief executive officer at Yahoo!
Safra Catz, co-chief executive officer of Oracle
Marillyn Hewson

Madeline McMahon

IT'S not just top jobs for the boys in the technology sector. A range of women - although admittedly small in number - have crashed through the glass ceiling and doing very nicely, thank you.

Although probably not a household name, Angela Ahrendts commands the kind of salary that even and Irish banker would drool over. Apple's senior vice president of retail and online stores, was the highest-paid female executive in the US last year - and rewarded with a lavish pay packet.

The former chief executive officer of London-based fashion retailer Burberry Group was awarded $82.6m (€73.2m) in 2014, according to data compiled by Bloomberg.

Ahrendts (54) joined the world's most-valuable company in May 2014 and became the first woman on its management team.

Ahrendts's pay included a sign-on bonus and a make-whole grant for awards left behind at Burberry. The pay package is currently valued at $105.5m (93.5m). Josh Rosenstock, a spokesman for Apple, wouldn't comment on her compensation.

The better known Marissa Mayer of Yahoo was America's highest-paid female chief executive.

Aged just 39, Mayer was awarded $59.1m (€52.3m) in 2014, making her No 3 among the eight women on the Bloomberg Pay Index, a daily ranking of the top-paid US executives.

Her compensation, more than 95pc of which is comprised of stock and options, has fallen in value to a mere $45m (€39.8m), according to data compiled by Bloomberg.

Yahoo announced in January that it planned to spin off its remaining investment in Alibaba Group Holding, which had bolstered the Sunnyvale, California-based company's stock last year. Mayer is under pressure to create shareholder value without it.

"There's a limited number of people who are viewed as having those skill sets, and you have to pay for it," said David Doyle, an executive compensation lawyer at Day Pitney LLP.

Yahoo spokeswoman Rebecca Neufeld declined to comment.

Oracle Corp's Safra Catz was No 2 on the ranking after being awarded $71.2m (€63.1m) in fiscal 2014 for her role as chief financial officer.

Catz was named co-CEO after the Redwood City, California-based company's fiscal 2014 year ended. In connection to her promotion, she received 500,000 options and 125,000 performance stock units, according to a September filing.

Oracle spokeswoman Deborah Hellinger declined to comment.

The Bloomberg pay ranking also calculates pay-for-performance using an executive's compensation as a percentage of a company's economic profit, defined as after-tax net operating profit minus its cost of capital.

By that measure, Apple's Ahrendts delivered the best rating among all women on the ranking. Her pay is equal to 0.3pc of the Cupertino, California-based company's $28.6bn three-year average economic profit.

Lockheed Martin Corp's chief executive Marillyn Hewson delivered the third-best dollar-for-dollar performance among the women on the index. The defence contractor's quarterly revenue has slumped 16pc since she took over the Bethesda, Maryland-based company in January 2013, and earnings have risen more than 54pc. Larisa Cioaca, a spokeswoman for Lockheed, declined to comment. Hewson's 2014 pay, valued at $36.7m (€32.5m) at year end, is 2.9pc of Lockheed's three-year average economic profit of $1.28bn.

"She's well-respected by her customers, and frankly that goes a long way when you have programmes that periodically face challenges," said Howard Rubel, a New York-based analyst with Jefferies LLC.

Other female executives on the ranking include Mylan NV CEO Heather Bresch, who was awarded $40m and Martine Rothblatt, co-ceo and chairman of United Therapeutics, with $33.3m in awarded pay.

Executives including Facebook's chief Operating officer Sheryl Sandberg and Twitter's general Ccunsel Vijaya Gadde have previously been on the ranking.

However, the current value of their awarded pay - $17.6m and $5.8m, respectively - has dropped them from the index.

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