Apple's New CEO John Ternus Paid to Outperform S&P 500

Apple's new CEO, John Ternus, has received a $3 million salary and a fiscal 2027 target equity award of $55 million. The payment structure is unusual, with 75% of the equity award vesting based on Apple's total shareholder return relative to other companies in the S&P 500.

This means that Ternus is paid not for Apple going up, but for Apple going up more than the field. This performance-based compensation plan is a significant departure from traditional CEO pay structures.

Ternus's package is larger in total, with $58 million at target, but far more of it is contingent on performance. In contrast, outgoing CEO Tim Cook will receive a $45 million award split 50/50, with unconditional time-based equity worth $22.5 million against Ternus's $13.75 million.