New CEO gets $58 million, on one condition Apple must meet
Apple's new CEO John Ternus will receive a compensation package worth approximately $58 million, with the majority tied to performance-based stock awards. The package requires Apple to outperform the S&P 500 for the CEO to receive the full value of his equity grants.
Why it matters
This compensation structure reflects a growing trend in corporate governance where executive pay is strictly tied to shareholder returns and market performance.
Apple has told regulators what it will cost to run Apple. John Ternus, who became chief executive on Tuesday, gets a $3 million annual base salary and a stock award targeted at $55 million for fiscal 2027, which puts his package at roughly $58 million. There is also a one-time prorated grant of restricted stock units worth about $2.5 million, covering the months of fiscal 2026 he spends in the chair.What makes the number interesting is how little of it is guaranteed. Three-quarters of that $55 million is performance stock, and it vests only if Apple's total shareholder return beats the rest of the S&P 500. Keep pace with the index and the largest part of the new CEO's pay never arrives.
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