Apple disclosed in a fresh regulatory submission that its incoming chief executive, John Ternus, will be paid a package worth $58 million, made up of salary and target stock awards. The filing also laid out the terms of Tim Cook’s new, lucrative arrangement as Apple’s executive chairman.
John Ternus’s compensation breakdown
The figures were made public through a document filed with the Securities and Exchange Commission. Ternus’s $58 million package is split into two parts:
- Base salary: $3 million per year
- Annual equity award: $55 million target value starting in fiscal 2027
- 75% ($41.25M) in performance-based restricted stock units (RSUs)
- 25% ($13.75M) in time-based RSUs
The performance-linked shares are tied to Apple’s total shareholder return relative to other S&P 500 companies. The time-based shares vest at a rate of 12.5% every six months across four years.
For fiscal 2026, Ternus is also receiving prorated stock awards with a $2.5 million target value, reflecting the portion of the year he will serve as CEO.
Although Apple did not reveal Ternus’s prior pay in his previous role as senior vice president of hardware engineering, Bloomberg reports that “that management level typically gets paid about $25 million annually when including stock, salary and bonuses.”
Tim Cook’s compensation breakdown
At the same time, Tim Cook is being awarded a package with a $47 million target value for fiscal 2027. This consists of:
- Base salary: $2 million per year, effective September 26
- Fiscal 2027 equity award: $45 million target value
- 50% ($22.5M) performance-based
- 50% ($22.5M) time-based, vesting 12.5% every six months over four years
This is an unusually substantial package for an executive chairman position, underscoring the value Apple places on Cook’s continued involvement. In his executive chairman role, Cook will focus on managing Apple’s relationships with President Trump and the Chinese government.
For fiscal 2025, Cook’s total compensation as CEO amounted to $74,294,811. That figure, however, includes items not reflected in today’s SEC filing, such as non-equity incentive plan compensation, retirement plan contributions, accrued vacation, personal security costs, and other items. Cook’s combined salary and stock awards came to roughly $60.5 million for 2025.
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