Apple Discloses New Pay Packages for Ternus and Cook
Apple has officially entered a new leadership era with John Ternus taking over as chief executive officer from Tim Cook. As Ternus begins his tenure, the company has disclosed the compensation packages for both its new CEO and Cook, who has moved into the role of executive chairman.
According to a new filing with the US Securities and Exchange Commission, Ternus has a target compensation of approximately $58 million for the fiscal year, equivalent to around Rs 551 crore. Cook, meanwhile, will receive a target package of about $47 million, or roughly Rs 446 crore, in his new position.
The disclosure came on Tuesday, the same day Ternus officially began his tenure as Apple CEO.
How Much Will John Ternus Earn?
Ternus’ compensation package includes a $3 million annual salary, along with stock awards targeted at approximately $55 million for fiscal 2027.
Apple will also provide Ternus with a prorated restricted stock unit (RSU) award worth around $2.5 million for fiscal 2026, which ends in September.
The larger equity award is structured around Apple’s performance and Ternus’ continued service. Around 75% of the fiscal 2027 RSU award will be performance-based, with the remaining 25% consisting of time-based RSUs.
The performance-based portion will be linked to Apple’s total shareholder return compared with other companies in the S&P 500. The time-based shares will vest in equal instalments every six months over a four-year period.
This means a significant portion of Ternus’ compensation will depend on Apple’s performance relative to other major US-listed companies.
Tim Cook’s Pay Falls After CEO Transition
Cook’s compensation package is considerably smaller than what he received as Apple CEO. As executive chairman, he will receive a $2 million annual salary and planned stock awards worth around $45 million for fiscal 2027.
Half of Cook’s equity award will be performance-based, while the other half will consist of time-based RSUs that vest over four years.
Cook’s new compensation represents a major reduction from his final package as Apple CEO. In 2025, he received approximately $74.3 million, including a $3 million salary, $12 million in performance-based cash compensation and $57.5 million in stock awards.
Apple’s latest filing also includes a special provision for Cook. If he retires on or after the first anniversary of the stock grant date, he will still receive the shares according to their original vesting schedule. This differs from the usual arrangement in which an executive’s unvested shares may be forfeited after leaving the company.
A Major Leadership Change at Apple
Ternus’ appointment marks only the second change of CEO at Apple this century. Cook became CEO in August 2011, succeeding Apple co-founder Steve Jobs.
During his roughly 15-year tenure, Cook oversaw Apple’s transformation into one of the world’s most valuable companies. Apple’s market valuation grew dramatically during his leadership, reaching more than $4.5 trillion.
Ternus now takes charge at a crucial moment for the technology giant, with investors watching Apple’s next phase of growth, product development and artificial intelligence strategy.
The new compensation structure also highlights Apple’s expectations from its new CEO. A large part of Ternus’ potential earnings is tied to stock performance, aligning his financial rewards with long-term shareholder returns.
For Cook, the move to executive chairman signals a transition away from day-to-day leadership while allowing him to remain closely connected to the company.
As Ternus begins his first chapter as Apple’s CEO, the pay packages make one thing clear: the company is placing substantial financial incentives behind its new leadership while keeping Cook involved in its next phase.
