Apple is giving new Chief Executive Officer John Ternus an annual base salary of $3 million, along with a targeted stock award worth $55 million for fiscal 2027.
The compensation package was disclosed in a regulatory filing after Ternus officially took over as Apple’s CEO on September 1, succeeding Tim Cook after Cook’s 15-year tenure at the company.
The structure of Ternus’ compensation puts a significant emphasis on equity and performance, making his potential earnings substantially larger than his base salary.
Ternus’ $58 Million Target Compensation
Ternus’ fiscal 2027 package consists of his $3 million salary and a targeted $55 million annual equity award, bringing the headline value to approximately $58 million.
However, the $55 million stock award is not entirely guaranteed.
Apple has structured 75% of the award as performance-based restricted stock units (RSUs). Their value will depend on Apple’s total shareholder return compared with other companies in the S&P 500.
The remaining 25% will consist of time-based RSUs, which will vest periodically over four years.
This structure gives Ternus a significant financial incentive to deliver strong shareholder returns during his first full fiscal year as CEO.
Additional Stock Award for Fiscal 2026
In addition to his future compensation, Ternus will receive a prorated stock-unit award valued at approximately $2.5 million for his service as CEO during the remainder of Apple’s fiscal 2026.
His new $3 million annual salary became effective on September 1, the day he formally assumed the CEO position.
Tim Cook Moves to Executive Chairman
The leadership transition also changes Tim Cook’s compensation.
Cook, who stepped down as CEO after 15 years, has moved into the role of executive chairman.
For fiscal 2027, Apple is giving Cook a $2 million annual salary and a targeted $45 million equity award, putting his target compensation at roughly $47 million.
While Cook’s compensation is lower than Ternus’ target package, his continued role signals that Apple intends to retain his experience and relationships during the transition.
Why Apple’s Pay Structure Matters
The compensation package comes at a critical moment for Apple.
Ternus takes control of the world’s most valuable technology companies at a time when Apple faces major challenges in artificial intelligence, product innovation and global supply chains.
As Apple’s former hardware engineering chief, Ternus brings extensive experience in product development. However, leading the entire company will require him to manage areas ranging from services and software to artificial intelligence, manufacturing and global regulatory relationships.
The performance-heavy structure of his stock award means that a large portion of his potential compensation is directly connected to Apple’s performance relative to the broader market.
A New Era After Tim Cook
Cook leaves the CEO role after transforming Apple into a vastly larger company.
During his tenure, Apple’s market value grew from roughly $350 billion to around $4.5 trillion, while annual revenue expanded dramatically. Cook also oversaw the growth of Apple’s services business, expansion into products such as the Apple Watch and AirPods, and the development of Apple’s custom silicon strategy.
Ternus now inherits that enormous business while facing a very different competitive environment.
Artificial intelligence has become one of the technology industry’s biggest battlegrounds, and Apple is under pressure to strengthen its position as competitors invest heavily in AI-powered products and services.
Ternus Faces High Expectations
The size and structure of Ternus’ compensation package underline the expectations surrounding his new role.
His base salary is only a fraction of the potential value of his overall compensation. The majority comes through stock awards, particularly performance-based shares.
That means his long-term financial reward will be closely connected to Apple’s ability to create value for shareholders.
For Apple, the arrangement also provides a way to align the new CEO’s incentives with the company’s long-term performance.
The Bigger Picture
John Ternus begins his tenure with a compensation package that could reach roughly $58 million on a target basis for fiscal 2027, but much of that value depends on Apple’s future performance.
The pay package reflects the scale of the job and the challenges facing Apple’s new leader.
After 15 years under Tim Cook, Ternus represents a new chapter for the company. His ability to maintain Apple’s financial strength while accelerating innovation—particularly in artificial intelligence—will likely determine whether the company can sustain its extraordinary growth into the next decade.
For now, Apple’s message is clear: the new CEO is being paid not simply to run the world’s biggest technology company, but to deliver results.
