Regulatory filings with the U.S. Securities and Exchange Commission (SEC) detailed the compensation package for Apple’s newly appointed Chief Executive Officer, John Ternus.
Ternus—who officially stepped into the CEO role succeeding Tim Cook—will earn a $3 million annual base salary. The bulk of his compensation package is heavily performance-weighted, aligning his financial incentives directly with Apple’s long-term stock trajectory.
Breakdown of Executive Pay Packages
| Executive / Position | Base Salary | Target Equity Award (Fiscal 2027) | Key Compensation Structure & Notes |
| John Ternus (CEO) | $3,000,000 | $55,000,000 | • Includes a prorated $2.5M stock grant for FY2026. • 75% of equity is performance-based tied to S&P 500 total shareholder return. • 25% vests in equal 12.5% semiannual installments over 4 years. |
| Tim Cook (Executive Chairman) | $2,000,000 (eff. Sept 26) | $45,000,000 | • Salary steps down from $3M base CEO salary. • Remains involved in broad strategy and regulatory relations. |
How the $55M Equity Structure Works
Unlike traditional guaranteed stock grants, 75% of Ternus’s annual $55 million stock target relies on performance-based restricted stock units (RSUs).
To realize the full value, Apple must outperform other companies within the S&P 500 in total shareholder return. If Apple underperforms relative to its benchmark index, the payout scales down significantly.
The remaining 25% consists of time-based RSUs designed for retention, vesting in equal 12.5% chunks every six months across a four-year period.
Alignment Across Leadership
The transition keeps Apple’s compensation strategy consistent with the performance-driven model adopted during Cook’s 15-year tenure. By setting high benchmark bars for Ternus while retaining Cook as Executive Chairman on a target $45M equity package, Apple’s board signals continuity as the company navigates strategic hardware cycles and AI software integration.
English