Apple CEO John Ternus Gets $58 Million Pay Package as Tim Cook Moves to Executive Chairman
Apple CEO John Ternus compensation: Apple has disclosed the new compensation arrangements for CEO John Ternus and former CEO Tim Cook following the company’s leadership transition. Ternus is set to receive a targeted compensation package of about $58 million for fiscal 2027, while Cook will receive a targeted package of approximately $47 million as Apple’s executive chairman.
The compensation details were disclosed by Apple in a filing with the US Securities and Exchange Commission (SEC) on September 1, 2026, the same day Ternus formally took over as Apple CEO.
The leadership change is one of the most significant developments in Apple’s corporate history. Ternus succeeds Cook after Cook led the company for 15 years, while Cook moves into the executive chairman role.
John Ternus gets $58 million target compensation
John Ternus’ new Apple compensation package combines a fixed salary with a substantial stock-based award.
Under the arrangement disclosed in Apple’s SEC filing, Ternus’ annual salary has been increased to $3 million effective September 1, 2026.
Apple has also approved a $55 million target equity award for fiscal 2027.
That brings Ternus’ target fiscal 2027 compensation to approximately:
Salary: $3 million
Target equity award: $55 million
Total target compensation: $58 million
In addition, Ternus received a prorated RSU award with a target value of approximately $2.5 million for his service as CEO during fiscal 2026.
This means the $58 million figure should not be interpreted as a guaranteed cash payment. A significant portion of Ternus’ compensation is linked to Apple’s stock performance and the conditions attached to his equity awards.
How John Ternus’ Apple stock award works
The most important part of Ternus’ compensation is the $55 million fiscal 2027 equity award.
Apple has structured 75% of the award as performance-based restricted stock units (RSUs).
The remaining 25% will consist of time-based RSUs.
The performance-based component will depend on Apple’s total shareholder return relative to other companies in the S&P 500. This means Ternus’ eventual payout can be higher or lower than the target value depending on Apple’s relative performance.
The time-based portion follows a different structure. The shares will vest in equal installments every six months over four years.
This structure gives Ternus a strong financial incentive to focus on long-term shareholder performance rather than simply short-term results.
Ternus compensation at a glance
Component Amount/Structure
Annual salary $3 million
FY2027 target equity $55 million
Performance-based RSUs 75% of FY2027 equity
Time-based RSUs 25% of FY2027 equity
FY2026 prorated RSU award About $2.5 million
FY2027 target compensation About $58 million
Tim Cook’s compensation after leaving CEO role
While John Ternus’ compensation has increased with his promotion to CEO, Tim Cook’s package has been reduced following his move away from the chief executive position.
Cook is now Apple’s executive chairman, with a new targeted compensation package of approximately $47 million for fiscal 2027.
His package includes:
$2 million annual salary
$45 million target equity award
Total target compensation: approximately $47 million
Half of Cook’s equity award will consist of performance-based RSUs, while the other half will be time-based RSUs vesting over four years.
The arrangement also contains specific provisions related to retirement. If Cook retires on or after the first anniversary of the grant date, his equity award can continue to vest according to the existing schedule, subject to the applicable performance conditions.
Tim Cook earned $74.3 million as Apple CEO in 2025
Cook’s new compensation package is significantly lower than the compensation he received while serving as Apple CEO.
According to Apple’s 2026 proxy materials, Cook’s total compensation for 2025 was approximately $74.3 million.
That included:
$3 million salary
About $57.5 million in stock awards
$12 million in non-equity incentive compensation
About $1.76 million in other compensation
The total came to approximately $74.29 million.
His move to executive chairman therefore represents a meaningful reduction in his target compensation, although his new role continues to provide substantial equity exposure.
Why John Ternus is Apple’s new CEO
Ternus is not a newcomer to Apple.
He joined Apple’s Product Design team in 2001 and became vice president of Hardware Engineering in 2013. He later became senior vice president of Hardware Engineering and was responsible for teams working across products including the iPhone, iPad, Mac and AirPods.
His background is particularly focused on hardware engineering and product development.
Before joining Apple, Ternus worked as a mechanical engineer at Virtual Research Systems. He holds a bachelor’s degree in mechanical engineering from the University of Pennsylvania.
Apple had already announced in April that Ternus would succeed Cook as CEO effective September 1, 2026. The company said the transition was approved unanimously by its board and was part of a long-term succession planning process.
What Tim Cook will do as executive chairman
Cook is not leaving Apple.
Instead, he has moved into the executive chairman role, allowing him to remain involved with the company while Ternus takes responsibility for day-to-day leadership as CEO.
Apple said Cook would assist with certain aspects of the company, including engagement with policymakers around the world.
Arthur Levinson, who had served as Apple’s non-executive chairman, became the company’s lead independent director on September 1, while Ternus joined Apple’s board as CEO.
Apple’s current leadership listing now identifies John Ternus as CEO and Tim Cook as executive chair.
Apple begins a new leadership era
The transition from Cook to Ternus is particularly significant because Apple has experienced very few CEO changes in recent decades.
Cook became Apple CEO in August 2011 after Steve Jobs stepped down.
During Cook’s tenure, Apple expanded into a company with an enormous global footprint across hardware, software and services. His leadership included the expansion of the iPhone ecosystem, Apple silicon, AirPods, Apple Watch and a growing services business.
Ternus now inherits that highly valuable but increasingly complex business.
His compensation package reflects the expectations attached to the position.
With 75% of his $55 million fiscal 2027 equity award tied to performance, a large part of his potential compensation depends on how Apple performs relative to the broader S&P 500.
What the compensation package means for Apple investors
For investors, the structure of Ternus’ compensation may be more important than the headline $58 million figure.
The majority of his target equity award is performance-linked. Therefore, Ternus cannot simply collect the full target value regardless of Apple’s performance.
Instead, the compensation structure connects a large portion of his potential reward with shareholder returns.
This creates an alignment between executive incentives and investors, although actual results will depend on Apple’s stock performance and the terms governing the awards.
The time-based portion also encourages Ternus to remain with Apple over several years.
Will John Ternus actually receive $58 million?
Not necessarily.
The $58 million figure represents target compensation for fiscal 2027, not a guaranteed cash payment.
His $3 million salary is the fixed component. Much of the remaining amount comes through equity awards whose ultimate value can change based on Apple’s share price and performance conditions.
The $55 million equity award itself includes both performance-based and time-based RSUs.
Therefore, the eventual value of Ternus’ compensation could be different from the headline $58 million target.
Similarly, Cook’s approximately $47 million target package includes $45 million in equity rather than an equivalent amount of guaranteed cash compensation.
What comes next for Apple under John Ternus?
Ternus takes charge at a critical point for Apple.
The company continues to face intense competition in smartphones, personal computers, wearables and artificial intelligence.
Apple also needs to maintain its product innovation while managing supply chains, regulatory scrutiny and competition from major technology companies globally.
Ternus’ background gives him deep experience in Apple’s hardware organization, but becoming CEO requires responsibility across the entire company.
His new compensation arrangement suggests that Apple’s board is placing considerable emphasis on long-term shareholder performance.
The coming years will therefore determine whether Ternus can successfully extend Apple’s product and financial momentum while maintaining the culture established under Cook.
John Ternus vs Tim Cook: New compensation compared
Executive New role Salary Target equity Target compensation
John Ternus CEO $3 million $55 million $58 million
Tim Cook Executive Chairman $2 million $45 million $47 million
The difference is notable: Ternus’ target compensation is about $11 million higher than Cook’s new target package, primarily because of the larger target equity award attached to the CEO position.
However, these figures represent target compensation and should not be confused with guaranteed annual cash earnings.
Bottom line
Apple’s leadership transition has now formally entered a new phase.
John Ternus is Apple’s CEO, with a fiscal 2027 target compensation package of approximately $58 million, consisting of a $3 million salary and a $55 million target equity award. Seventy-five percent of that equity award is performance-based.
Tim Cook is now executive chairman, with a fiscal 2027 target package of approximately $47 million, including a $2 million salary and $45 million in target equity.
The compensation figures underline the enormous financial responsibility attached to Apple’s top leadership position. More importantly, the structure of Ternus’ package shows that Apple is tying much of his potential reward to long-term shareholder performance.
For Apple investors, the key question is no longer simply how much the new CEO will earn. The bigger question is whether John Ternus can maintain Apple’s extraordinary growth and innovation after Tim Cook’s long tenure at the helm.
FAQs
Who is the new CEO of Apple?
John Ternus became Apple’s CEO on September 1, 2026, succeeding Tim Cook.
How much will John Ternus earn as Apple CEO?
John Ternus has a $3 million annual salary and a $55 million target equity award for fiscal 2027, giving him target compensation of approximately $58 million.
How much will Tim Cook earn after leaving as Apple CEO?
Tim Cook’s fiscal 2027 target compensation as executive chairman is approximately $47 million, comprising a $2 million salary and $45 million target equity award.
Is John Ternus’ $58 million package guaranteed?
No. The $58 million is a target compensation figure. A large portion is made up of equity awards whose eventual value depends on Apple’s stock performance and applicable vesting and performance conditions.
How much did Tim Cook earn in 2025?
Apple reported total compensation of approximately $74.3 million for Tim Cook in 2025.
What percentage of John Ternus’ equity award is performance-based?
75% of his $55 million fiscal 2027 equity award is performance-based, linked to Apple’s total shareholder return relative to S&P 500 companies.
What is Tim Cook’s new role at Apple?
Tim Cook has become executive chairman of Apple’s board, while John Ternus serves as CEO.
Why was John Ternus selected as Apple CEO?
Ternus has spent more than two decades at Apple and has led its Hardware Engineering organization, overseeing major product-development efforts across the company.
Disclaimer
This article is for informational and news-reporting purposes only. Compensation figures are based on Apple’s disclosed target arrangements and may change depending on stock prices, performance conditions, vesting requirements and other applicable terms. This article does not constitute investment, financial or trading advice.
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About the Author
Ravi H Irannanavar is a blogger and digital content creator focused on delivering timely and useful updates across business, stock markets, jobs, government exams, and breaking news. Through his content, he aims to simplify complex developments and provide readers with clear, easy-to-understand information for everyday decision-making.