The majority of the incoming CEO’s equity compensation—75% of the $55 million target—is tied directly to Apple’s total shareholder return compared to the broader S&P 500 index. The remaining portion consists of time-based restricted stock units, scheduled to vest in equal 12.5% semiannual installments over a four-year period. Beyond this primary package, Ternus receives a prorated $2.5 million stock grant covering his tenure as CEO during the remainder of fiscal 2026.

Simultaneously, Apple disclosed terms for outgoing CEO Tim Cook. Effective September 26, Cook transitions to a new pay structure featuring a $2 million annual salary and a $45 million targeted equity award for fiscal 2027.