Apple’s Ternus to Earn $58 Million as Cook Shifts to Executive Chairman
Apple Inc. announced that its new Chief Executive Officer, John Ternus, will receive a compensation package estimated at approximately $58 million for fiscal 2027, whereas Tim Cook’s position as executive chairman is set to yield around $47 million. The company made the disclosure in a filing with the Securities and Exchange Commission on Tuesday, coinciding with the commencement of Ternus’ tenure. The new CEO will receive an annual base salary of $3 million going forward, along with a stock grant that has a target value of $55 million for the upcoming year.
Cook, 65, is transferring leadership to Ternus following a 15-year period during which the company diversified its product offerings and increased its annual revenue to nearly half a trillion dollars. The stock experienced an increase exceeding 2,200 percent during Cook’s tenure, significantly surpassing the performance of the broader market. The 51-year-old Ternus is set to receive a prorated allocation of restricted stock units valued at approximately $2.5 million in fiscal 2026, which extends through September. Three-quarters of Ternus’ equity award will be contingent upon Apple’s performance relative to the broader S&P 500 index. The remaining 25 percent will be linked to time-based stock units that vest on a semiannual basis.
Cook’s annual salary will be reduced from $3 million to $2 million as part of his new role, while the target value of his 2027 stock package is $45 million. His compensation will be less correlated with Apple’s performance, with only half being associated with the S&P 500. Cook’s total compensation as CEO in 2025 amounted to $74.3 million. The value of the new grants to Ternus and Cook will vary in accordance with Apple’s stock price. Cook has indicated his intention to remain in his new position as executive chairman for an extended period.
Apple has not revealed Ternus’ compensation for his previous position as senior vice president of hardware engineering; however, it is common for individuals at that management level to receive approximately $25 million per year when factoring in stock, salary, and bonuses. In the filing on Tuesday, Apple did not disclose the potential cash bonuses for the executives, although such bonuses are typically estimated to be approximately twice the base salary. The company based in Cupertino, California, generally offers additional information prior to its shareholder meetings that occur early in the year.
