Key Highlights
- John Ternus took over as Apple’s chief executive on September 2, securing a compensation deal valued at approximately $58M for the 2027 fiscal year
- His remuneration consists of a $3M annual base salary combined with $55M in equity compensation, supplemented by a $2.5M stock grant reflecting partial service in fiscal 2026
- Performance metrics drive 75% of his equity compensation, linked directly to Apple’s shareholder return performance relative to S&P 500 companies
- Tim Cook transitions to executive chairman with reduced compensation of $47M, compared to his previous $74.3M CEO package in 2025
- Ternus faces an immediate challenge on September 9 when Apple plans to launch its iPhone 18 series
Apple (AAPL) stock experienced a 0.17% decline on Tuesday following the company’s submission of executive compensation details to the SEC. The regulatory filing coincided with Ternus’ inaugural day in the chief executive position.
The 51-year-old Ternus assumes leadership with a $58M target package designated for the 2027 fiscal period. The compensation comprises a $3M base salary alongside $55M in equity-based awards.
Additionally, he was granted restricted stock units valued at $2.5M on a prorated basis, accounting for his service as chief executive during the latter portion of fiscal 2026.
The equity arrangement emphasizes performance metrics significantly. Seventy-five percent of the $55M equity component depends on Apple’s total shareholder return performance compared to other S&P 500 constituents. The balance vests according to a time-based framework, distributing equal 12.5% increments biannually across a four-year timeline.
Cook’s Transition to Executive Chairman
Cook assumed his executive chairman position on the identical date. His revised compensation totals approximately $47M for the 2027 fiscal year, comprising a $2M base salary plus $45M in equity awards.
This represents a reduction from his $74.3M aggregate compensation as chief executive in 2025, with his annual salary decreasing from $3M to $2M. Cook’s equity allocation mirrors Ternus’ structure, dividing equally between performance-linked and time-based components.
According to the Wall Street Journal, the SEC documentation did not specify cash bonus arrangements for either executive.
Apple unveiled the leadership transition in April, characterizing it as the culmination of extensive succession planning efforts. Ternus began his tenure at Apple in 2001 and earned promotion to senior vice president of hardware engineering in 2021. His portfolio encompassed overseeing the iPhone, iPad, Mac, Apple Watch, AirPods, and Vision Pro product lines.
Immediate Challenge: September 9 Product Launch
Ternus has minimal time to settle into his new position before confronting his first significant milestone. Apple has scheduled a product showcase for September 9 at its Cupertino headquarters.
The technology giant is anticipated to reveal its iPhone 18 product range, updated Apple Watch models, and an overhauled Siri assistant utilizing large language model technology.
Cook distributed a farewell communication to Apple staff on Monday, marking his last day as chief executive. Throughout his 15-year tenure, he expanded Apple’s market capitalization to $4 trillion and drove annual revenues beyond $416 billion in the 2025 fiscal year.
The compensation documentation became publicly accessible Tuesday via SEC channels.
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