John Ternus to receive $55 million in annual Apple stock grants

The board of directors has approved an annual stock grant of $55 million for Apple's new CEO, John Ternus.

This grant will be awarded in the form of Apple shares. Its final value will depend on how the company's stock performs relative to other companies in the S&P 500 index.

Ternus's base annual salary is set at $3 million, meaning the majority of his total compensation will come from stock.

Under this system, even if the CEO holds a small stake, they become a shareholder. If Apple's stock price rises, it serves the executive's interests. If company performance declines, the drop in stock value will also impact their income.

The practice of making executives shareholders is common in large companies. This aligns the director's compensation with the company's long-term results.