Apple said it plans to increase its new chief executive John Ternus' annual salary to US$3 million (HK$23.4 million) and approved an annual equity award for him with a target value of US$55 million starting from next year, mainly of which will be linked to the iPhone maker's stock performance.
Three-quarters of Ternus' stock award will hinge on how Apple's shares perform against the broader S&P 500, while the remaining 25 percent will come in the form of time-based restricted stock units that vest twice a year.
Former CEO Tim Cook, who becomes the company's executive chairman, will be paid US$2 million, effective September 26, down from US$3 million.
Apple will also give Cook an equity award with a target value of US$45 million in fiscal 2027, while only half of his equity package will be weighted on Apple's performance relative to the S&P 500, compared with 75 percent of Ternus' award.
This came as Ternus, Apple's hardware chief, formally succeeded Cook as CEO on Tuesday.
During Cook's 15-year tenure, he sent Apple's valuation rose from US$350 billion to more than US$4.5 trillion, along with a 22-fold surge in the firm's shares.
