The targeted compensation package of $58 million places John Ternus among the highest-paid chief executives in the major US corporate sector.
Table of contents:
- Compensation package and financial allowance details
- The financial structure of John Ternus’s bonuses
- Tim Cook’s new phase and allocations
- Leadership transition path and company history
- Frequently asked questions
Compensation package and financial allowance details
Apple announced on Tuesday the details of the financial packages and compensation allocated to its new chief executive and former chief, marking the start of the first day of a leadership transition process carefully mapped out over many months. According to official disclosures, the new chief executive, John Ternus, is set to receive a targeted compensation package of nearly $58 million for the 2027 fiscal year, while Tim Cook—who has officially transitioned to the role of executive chairman of the board—will earn about $47 million, representing a sharp decline compared to his total earnings of $74.3 million in 2025.
The announcement of these precise figures came via financial disclosure documents submitted to the US Securities and Exchange Commission on Tuesday afternoon, coinciding with Ternus officially taking on his new role following a storied career during which he served as senior vice president of hardware engineering at the company, leading a new chapter in the tech giant’s history.
The financial structure of John Ternus’s bonuses
The detailed financial structure of Ternus’s compensation for the 2027 fiscal year includes an annual base salary of $3 million, alongside targeted annual stock grants valued at $55 million. These grants are distributed as 25 percent in time-based restricted stock units vesting semi-annually over four consecutive years, while the remaining 75 percent is tied to financial performance metrics, specifically Apple’s total shareholder return compared to companies listed in the S&P 500 index.
In addition to this package allocated for the 2027 fiscal year, Apple’s board of directors approved a pro-rata restricted stock grant for Ternus for the 2026 fiscal year with a targeted value of $2.5 million to cover the transitional period. This disclosure marks the first public and direct look at Ternus’s financial income at Apple, as his previous compensation when serving as senior vice president was not subject to the public disclosure requirements mandatory for top executives.
Tim Cook’s new phase and allocations
Tim Cook’s transition to the seat of executive chairman of the board comes with a notable reduction in his day-to-day executive powers, matched by a direct decrease in his annual financial entitlements. His base salary was cut from $3 million to $2 million annually, with a targeted annual stock grant valued at $45 million set for the 2027 fiscal year.
Cook’s restricted stock grant will be divided equally, with 50 percent tied to time and vesting over four years, while the remaining 50 percent is tied to the company’s stock price performance in financial markets. The financial agreement terms stipulate that should Cook decide to retire on or after the first anniversary of the stock grant date, the stock units will continue their scheduled vesting path, provided he does not receive the actual shares until their pre-scheduled dates without any acceleration.
Leadership transition path and company history
Apple first revealed its leadership succession plan last April via an official financial disclosure form, announcing Cook’s stepping down from the chief executive seat on September 1, 2026, for Ternus to take the reins of management and officially join the board of directors. This brings down the curtain on a historical era spanning roughly 15 years during which Cook led the technology giant to become the publicly traded company with the highest market capitalization in the world, despite recurring criticism and ongoing shareholder scrutiny regarding top executive compensation levels.
Although Ternus’s targeted financial package of $58 million is lower than the record levels Cook achieved in his previous years, it places him directly and firmly among the elite group of highest-paid chief executives in major US corporations, highlighting the scale of responsibilities resting on his shoulders to lead innovation in the company’s devices and services over the coming years.
Frequently asked questions
Question: What is the compensation package for new Apple CEO John Ternus?
Answer: John Ternus’s targeted compensation package for the 2027 fiscal year is roughly $58 million, including a $3 million base salary and $55 million in stock grants.
Question: How did Tim Cook’s financial allocations change after stepping down from executive management?
Answer: Tim Cook’s base salary dropped to $2 million with an annual stock grant valued at $45 million, bringing his total allocations to $47 million compared to about $74.3 million in 2025.
Question: What are the conditions and regulations for vesting John Ternus’s shares at Apple?
Answer: Twenty-five percent of the shares vest temporally over four years, while 75 percent are tied to Apple’s stock performance and shareholder return compared to S&P 500 companies.
