In a landmark leadership transition at Apple Inc., John Ternus officially took charge as Chief Executive Officer on Tuesday, concluding Tim Cook’s 15-year-long tenure. Following this, the company detailed the executive pay packages for both leaders.
The disclosure was made in a filing with the US Securities and Exchange Commission, according to a Bloomberg report.
For fiscal 2027, Ternus will receive a compensation package worth around $58 million. Meanwhile, Cook’s compensation as executive chairman is slated at roughly $47 million.
Apple Inc. had disclosed in April that Cook will step down as CEO and take over as executive chairman of the company’s board.
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John Ternus’ CEO compensation breakdown
Ternus will be paid a $3 million annual base salary moving forward.
He will receive a stock grant with a target value of $55 million next year.
The new CEO will get a prorated amount of restricted stock units worth about $2.5 million for 2026.
The report added that three-quarters of Ternus’ equity award will be based on Apple’s performance relative to the S&P 500.
The remaining 25 per cent will be tied to time-based stock units vesting semiannually.
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Tim Cook’s compensation as Apple executive chairman
Tim Cook’s pay will be less tied to Apple’s market performance, with 50 per cent tied to the S&P 500.
Cook’s annual salary will decrease from $3 million to $2 million in his new position.
The target value of his 2027 stock package is valued at $45 million.
- Cook’s previous pay package:
Cook’s total pay package in 2025 stood at $74.3 million.
The ultimate value of both executives’ grants will fluctuate according to Apple’s stock price. The company did not disclose potential cash bonuses for either executive.
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Tim Cook’s emotional farewell as Apple CEO
Reflecting on the leadership transition, Cook posted on X on Monday to express his gratitude and said he is ready for the next chapter.
“Sending lots of love to the Apple community on my last day as CEO. My title changes tomorrow, but the love I have for the Apple community never will. Thank you for being a constant source of inspiration. My gratitude is endless, and I’m excited for the next chapter!” the post read.
(with inputs from agencies)