Apple CEO John Ternus started Tuesday. His $55 million award starts next year

Apple CEO John Ternus took his position on Tuesday, accompanied by a substantial $55 million compensation package from the company's board. The package includes a salary increase to $3 million annually and restricted stock units valued at $2.5 million, prorated for the brief period he will serve as CEO before the fiscal year 2026 concludes.

Additionally, the board approved an annual equity award with a projected value of $55 million for fiscal 2027, with three-quarters of the value contingent on Apple's performance relative to other S&P 500 companies, and the remaining one-quarter vesting at a fixed rate over four years. Tim Cook, who remains as executive chair following his 15-year tenure as CEO, experienced a salary reduction from $3 million to $2 million and received a $45 million equity target award, split equally between restricted stock units and performance-based grants.

No annual cash bonus for Ternus has been disclosed thus far. The precedent set by Tim Cook's previous CEO transition in 2011, when he succeeded Steve Jobs, contrasts sharply with Ternus' compensation package, with Cook receiving a significantly larger equity award based on subjective assessment rather than a peer group or formula.