Today marks a financial milestone: Apple has announced that John Ternus, stepping into the role of CEO, will receive a total target compensation package of approximately $58 million for fiscal 2027. This figure is drawn from Apple’s updated SEC filing following his elevation to CEO and reflects the company’s approach to executive pay in its latest leadership transition.
Breakdown of Ternus’ Pay Package
Ternus’ target compensation will be made up of a $3 million base salary plus an equity award valued at $55 million. The equity component is split between time-based restricted stock units (RSUs) and performance-based RSUs. One quarter of the RSUs are time-vested, unlocking semiannually over four years. The remainder depends on how Apple’s total shareholder return (TSR) stacks up against that of other S&P 500 companies. For comparison, in fiscal 2026 Ternus was granted a prorated RSU award worth $2.5 million under his prior role before becoming CEO.
Tim Cook’s Compensation After Transition
Meanwhile, Tim Cook, now Executive Chair, will see a reduced compensation package. His base salary drops to $2 million, while his equity award for fiscal 2027 has a target value of $45 million. Half of that equity award will be vested over time (four years), the rest based on performance metrics tied to stock. If Cook retires after one year from the grant date, he’ll still see his equity vest—though the actual shares will be delivered only when originally scheduled vesting dates arrive.
Ternus’ appointment and his compensation plan are particularly noteworthy because his previous pay as Senior Vice President of Hardware Engineering wasn’t public. This is the first comprehensive look at what he’ll make as CEO. For Cook, the new package represents a substantial shrink from what he earned in 2025—$74.3 million—which included a salary of $3 million, performance-based cash awards, and sizable stock awards.
This shift comes as Apple formalizes its leadership restructuring. Over the past months, Cook has been preparing Ternus to take over daily CEO duties, with today’s filing aligning legal and financial recognition of that change.
What this means: Ternus inherits not just the top executive title, but a compensation framework that rewards long-term performance more heavily than immediate gains. This encourages alignment with shareholder interests, especially given the stock performance-based vesting. Watch for how Apple’s TSR tracks against its S&P 500 peers over Cook’s and Ternus’ vesting terms. Investors will also be watching how Ternus fulfills expectations now that details of his compensation—often opaque under his predecessor—are now public. Leadership changes are always more than symbolic; they signal the direction the company intends to take.
