In a landmark leadership transition at Apple Inc., John Ternus officially took charge as Chief Executive Officer on Tuesday, concluding Tim Cook’s 15-year-long tenure. Following this, the company detailed the executive pay packages for both leaders.
The disclosure was made in a filing with the US Securities and Exchange Commission, according to a Bloomberg report.
For fiscal 2027, Ternus will receive a compensation package worth around $58 million. Meanwhile, Cook's compensation as executive chairman is slated at roughly $47 million.
Apple Inc. had disclosed in April that Cook will step down as CEO and take over as executive chairman of the company's board.
Also Read | John Ternus takes over as Apple's new CEO from Tim Cook after 15 years
John Ternus’ CEO compensation breakdown
- Annual base salary:
Ternus will be paid a $3 million annual base salary moving forward.
- Stock grant:
He will receive a stock grant with a target value of $55 million next year.
- Restricted stock units:
He will receive a stock grant with a target value of $55 million next year.
- Restricted stock units:
The new CEO will get a prorated amount of restricted stock units worth about $2.5 million for 2026.
- Equity award:
The report added that three-quarters of Ternus' equity award will be based on Apple's performance relative to the S&P 500.
The remaining 25 per cent will be tied to time-based stock units vesting semiannually.
Also Read | As Tim Cook steps down, we look at Apple’s more mixed launches under his leadership
Tim Cook's compensation as Apple executive chairman
Tim Cook's pay will be less tied to Apple's market performance, with 50 per cent tied to the S&P 500.
- Annual salary:
Cook’s annual salary will decrease from $3 million to $2 million in his new position.
- Stock package:
The target value of his 2027 stock package is valued at $45 million.
- Cook's previous pay package:
Cook’s total pay package in 2025 stood at $74.3 million.
The ultimate value of both executives' grants will fluctuate according to Apple's stock price. The company did not disclose potential cash bonuses for either executive.
Also Read | Why is Tim Cook stepping down? What he plans to do at his Palm Springs vacation home after Apple exit
Tim Cook's emotional farewell as Apple CEO
Reflecting on the leadership transition, Cook posted on X on Monday to express his gratitude and said he is ready for the next chapter.
"Sending lots of love to the Apple community on my last day as CEO. My title changes tomorrow, but the love I have for the Apple community never will. Thank you for being a constant source of inspiration. My gratitude is endless, and I’m excited for the next chapter!" the post read.
(with inputs from agencies)