Apple has unveiled the compensation package for its next Chief Executive Officer, John Ternus, who is set to take the helm with a significant increase in both fixed pay and performance-linked rewards. The details, disclosed in an SEC filing, outline a structure designed to align executive incentives with shareholder returns.
John Ternus's New Compensation Package
Effective September 1, 2026, John Ternus's annual salary will be $3 million. This fixed component is complemented by a much larger equity award, signaling a strong emphasis on the company's long-term success under his leadership.
The core of Ternus's compensation is an annual equity award with a target value of $55 million, slated for fiscal 2027. A substantial 75% of this award will consist of performance-based Restricted Stock Units (RSUs), which will vest contingent on Apple's total shareholder return relative to other companies within the S&P 500 index. The remaining 25% of the equity award will be time-based RSUs, vesting semiannually in equal 12.5% installments over a four-year period.
Additionally, Apple's People and Compensation Committee granted Ternus a prorated RSU award for his service as CEO in fiscal 2026, with a target value of $2.5 million.
Tim Cook's Role as Executive Chair
The filing also shed light on the new compensation structure for current CEO Tim Cook, who will transition to the role of Executive Chair. Cook's annual salary will be adjusted to $2 million, effective September 26, 2026. He will also receive a target-value equity award of $45 million for fiscal 2027, with half being performance-based RSUs and the other half time-based RSUs.
Should Cook's termination be due to retirement on or after the first anniversary of the grant date, his equity award will vest subject to performance conditions, with settlement continuing on the originally scheduled dates. This ensures a smooth leadership transition while retaining valuable expertise within the company's executive structure.