Key Highlights
- Apple appointed John Ternus as CEO on September 2, securing a $58M total compensation plan for fiscal year 2027
- Ternus’ pay structure features a $3M annual base salary combined with $55M in equity compensation, plus an additional $2.5M prorated stock award for fiscal 2026
- Performance metrics drive 75% of his equity compensation, linked directly to Apple’s total shareholder return performance against S&P 500 benchmarks
- Former CEO Tim Cook transitions to executive chairman role with $47M compensation, representing a reduction from his previous $74.3M CEO package in 2025
- Ternus faces immediate pressure with Apple’s September 9 event expected to showcase the iPhone 18 series
Shares of Apple (AAPL) stock dipped 0.17% Tuesday following the company’s SEC disclosure detailing executive compensation for its new leadership structure. The regulatory filing coincided with Ternus stepping into his CEO position.
At 51 years old, Ternus assumes Apple’s chief executive role with a fiscal 2027 compensation package valued at approximately $58M. The structure comprises a $3M base salary alongside $55M in equity-based awards.
Additionally, Ternus secured a prorated restricted stock unit grant valued at $2.5M, compensating him for his partial-year tenure as CEO throughout fiscal 2026.
Performance incentives dominate his compensation design. Approximately 75% of the $55M equity award depends on Apple achieving competitive total shareholder return metrics versus S&P 500 peers. The balance vests according to time-based conditions, distributing in equal 12.5% increments biannually across a four-year timeline.
Cook Transitions to Executive Chairman
Cook simultaneously transitioned to executive chairman on September 2. His revised compensation totals approximately $47M for fiscal 2027, encompassing a $2M base salary plus $45M in equity awards.
This represents a notable decrease from Cook’s $74.3M total compensation as chief executive in 2025, with his base salary declining from $3M to $2M. Cook’s equity compensation mirrors Ternus’ structure, dividing equally between performance-linked and time-based vesting schedules.
According to the Wall Street Journal, the SEC documentation did not specify cash bonus arrangements for either executive.
Apple first disclosed the leadership transition in April, characterizing it as the culmination of extensive succession planning efforts. Ternus originally joined Apple in 2001 and earned promotion to senior vice president of hardware engineering in 2021. His portfolio included overseeing hardware development for iPhone, iPad, Mac, Apple Watch, AirPods, and Vision Pro products.
Immediate Challenge: September 9 Product Launch
Ternus enters his CEO tenure with minimal preparation time before facing a critical milestone. Apple has scheduled a major product unveiling for September 9 at its Cupertino headquarters.
Industry observers anticipate announcements for the iPhone 18 product family, updated Apple Watch models, and an enhanced Siri assistant utilizing large language model technology.
On Monday, Cook distributed a farewell message to Apple’s workforce, marking his final day as CEO. His 15-year leadership tenure expanded Apple’s valuation to $4 trillion while driving annual revenues beyond $416 billion in fiscal 2025.
The executive compensation documentation became publicly accessible Tuesday via SEC channels.
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