From Tim Cook to John Ternus: How Apple's executive pay changes under new CEO structure

Apple Inc. has formally disclosed the initial compensation packages for newly appointed Chief Executive Officer John Ternus and Executive Chairman Tim Cook following a regulatory filing with the US Securities and Exchange Commission (SEC). As per reports, the filing, submitted on Ternus’s first official day as chief executive, outlines a target compensation package of approximately $58 million for Ternus in fiscal 2027. Meanwhile, Cook will transition into his new executive chairman role with a target remuneration package of around $47 million.

Breakdown of John Ternus's CEO Compensation

The 51-year-old chief executive’s fiscal 2027 package comprises a base annual salary of $3 million alongside a target equity award valued at $55 million. Apple also granted Ternus a prorated restricted stock unit (RSU) award worth $2.5 million for the remainder of fiscal 2026. The structure heavily favours long-term corporate performance, with 75 per cent of his equity tied to Apple’s relative total shareholder return against S&P 500 peers, whilst the remaining 25 per cent vests semi-annually over four years.

ALSO READ: John Ternus Named Apple CEO; Tim Cook Steps Down 2026

Tim Cook's Pay Adjustment as Executive Chairman

Cook’s move to executive chairman means a notable reduction from his earnings during his 15-year tenure at the helm. Cook earned $74.3 million in fiscal 2025, which comprised a $3 million base salary, $12 million in performance cash bonuses, and $57.5 million in stock awards. Under the updated structure, Cook’s annual base salary will decrease to $2 million, complemented by an annual equity award of $45 million split evenly between performance-contingent and time-based stock units.

ALSO READ: 15 years at the helm: Tim Cook bids emotional farewell as Apple CEO

Performance Metrics and Transition Context

The regulatory disclosure highlights Apple's intent to maintain executive continuity while tying corporate earnings directly to shareholder returns. The target figures, however, do not include potential performance-based cash incentives, meaning final earnings could fluctuate based on operational outcomes.