Apple has disclosed the compensation package for its newly appointed Chief Executive Officer, John Ternus, who officially assumed the top role on September 1, 2026. The company revealed the details in a filing with the US Securities and Exchange Commission, which also outlined changes to the compensation package of former CEO Tim Cook following his transition to Executive Chairman.
Ternus is set to receive a target compensation package of approximately $58 million for the next fiscal year. The package is largely made up of stock awards, highlighting Apple’s focus on linking executive pay to the company’s long-term performance.
John Ternus’ $58 Million Compensation Package
According to Apple’s filing, Ternus will receive a base salary of $3 million for the next fiscal year. The larger portion of his compensation will come through stock awards valued at $55 million.
Together, the salary and stock awards put Ternus’ target annual compensation at roughly $58 million. The structure means that most of his potential compensation is tied to equity rather than fixed salary.
Apple has also provided Ternus with a one-time stock award worth $2.5 million. The additional grant covers the portion of the current fiscal year that he has already served as the company’s CEO.
Most of Ternus’ Stock Awards Depend on Performance
A significant share of Ternus’ stock-based compensation is tied directly to performance. Apple said 75 percent of his stock awards will be performance-based.
The vesting of these awards will depend on Apple’s stock performance compared with other companies in the S&P 500. This arrangement links a substantial part of Ternus’ compensation to how Apple performs relative to other major US companies.
The remaining 25 percent of the stock awards will be time-based. These shares will vest in equal instalments every six months over a four-year period.
The structure gives Ternus a combination of performance-linked and long-term equity incentives as he begins his tenure as Apple’s chief executive.
Tim Cook’s Pay Changes After CEO Transition
The SEC filing also details changes to Tim Cook’s compensation after he moved from CEO to Executive Chairman.
Cook’s annual base salary will be reduced to $2 million, effective September 26. His revised compensation package also includes $45 million in stock awards.
The stock awards will be divided equally between performance-based and time-based grants. Including his $2 million base salary, Cook’s total annual compensation package will be approximately $47 million.
The change reflects Cook’s transition to a different leadership role at Apple after 15 years as the company’s chief executive.
Special Provision Protects Cook’s Unvested Stock
Apple’s filing also contains a special provision concerning Cook’s stock awards. Under the provision, Cook will be allowed to retain his stock awards if he retires after the first anniversary of the grant.
This differs from Apple’s standard treatment of unvested shares, which are generally forfeited under the company’s usual policy when an executive leaves.
The provision therefore gives Cook specific protection over the stock awards covered by the new arrangement.
Cook’s 15-Year Run as Apple CEO Comes to an End
Cook became Apple’s CEO in 2011, succeeding co-founder Steve Jobs. He remained in the position for 15 years before moving into the Executive Chairman role in September 2026.
During Cook’s tenure, Apple expanded significantly and became one of the world’s most valuable companies. The company’s market capitalisation reached as high as $5 trillion earlier in 2026 before settling at around $4.6 trillion.
With Ternus now leading Apple as CEO, the company has entered a new phase of leadership while Cook continues to remain involved as Executive Chairman. The compensation details disclosed in the latest filing provide a clear view of how Apple has structured pay for both executives following the leadership transition.
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