By Anjali Sharma
WASHINGTON – Apple on Wednesday announced a new CEO John Ternus who officially taking over from Tim Cook at a time when the company is facing some big changes in the technology world, according to media reports.
Apple’s new chief is stepping into the top job with a compensation package tied heavily to stock and company performance. Tim Cook will continue at Apple as executive chair.
The veteran Apple executive is also getting a major jump in compensation as he moves into the top job.
According to a filing with the US Securities and Exchange Commission, Ternus will receive an annual salary of $3 million as Apple CEO.
He will get annual equity awards valued at $55 million.
John Ternus will also receive a one-time prorated restricted stock unit grant worth $2.5 million.
The $55 million annual equity award comes with two different conditions.
The company said that around 25% of the shares will vest over time, while the remaining 75% will depend on Apple’s performance compared with other companies in the S&P 500 index.
The final value of these stock-based awards is not fixed. It can rise or fall depending on Apple’s share price.
Cook may have left the CEO chair, but his compensation remains substantial.
Apple’s new executive chair, Cook will receive a $2 million salary and an equity award valued at $45 million.
Half of that equity award will vest over time. The other half will be tied to Apple’s performance against other companies in the S&P 500.
The new arrangement means Cook will continue to play a role at Apple even after handing over the CEO position to Ternus.
Ternus begins his tenure at a complicated moment for the company.
Apple is dealing with a mature smartphone market, while artificial intelligence companies are growing rapidly and reshaping the technology industry.
The new CEO will have to guide Apple’s entertainment and services businesses.
Apple TV and Apple Music have become important parts of the company’s wider services operations.
Company also announced another major responsibility is shifting inside Apple.
Apple executive Eddy Cue, who oversees services such as Apple TV, will take on responsibility for the company’s App Store as well this week.
