Apple’s new CEO John Ternus has been awarded a target compensation package worth $58 million for fiscal 2027, combining a $3 million annual salary with $55 million in target equity.
The package comes as Ternus formally takes over from Tim Cook, who has moved to the role of executive chairman after 15 years as Apple’s CEO.
The compensation was disclosed in an Apple regulatory filing as the company completed its leadership transition on September 1, 2026.
John Ternus Takes Over As CEO
Ternus officially became Apple’s CEO on September 1, succeeding Cook after the company announced the transition in April. Apple said the succession plan was unanimously approved by its board following a long-term planning process.
Cook will continue to support the company as executive chairman, including on certain matters involving engagement with policymakers around the world.
Ternus joined Apple in 2001 and has spent most of his career working on the company’s hardware. Before becoming CEO, he was senior vice president of Hardware Engineering, overseeing teams responsible for products including the iPhone, iPad, Mac, Apple Watch, AirPods and Apple Vision Pro.
He now takes charge of a company that reported $416.2 billion in revenue and $112 billion in net income in fiscal 2025. Apple’s latest reported quarter, the fiscal 2026 third quarter ended June 27, also produced record June-quarter revenue of $109.4 billion, up 16% year-on-year.
Inside John Ternus’ $58 Million Package
Ternus’ new annual salary is $3 million. For fiscal 2027, Apple has also approved a $55 million target equity award, taking his target compensation opportunity to $58 million when the salary and equity are combined.
The $55 million equity award is divided into two parts. Seventy-five percent consists of performance-based restricted stock units, while the remaining 25% consists of time-based restricted stock units.
The performance-based portion is linked to Apple’s total shareholder return relative to other companies in the S&P 500. The time-based portion is subject to a four-year vesting schedule.
That distinction is important because the $58 million headline does not represent $58 million in guaranteed cash compensation. Its realised value will depend in part on the conditions attached to the equity awards.
For fiscal 2026, Ternus has also been granted a prorated restricted-stock award with a target value of $2.5 million for his service as CEO during that fiscal year.
Tim Cook Moves To Executive Chairman
Cook’s compensation structure is also changing with his new role. His annual salary will be $2 million from September 26, 2026, while Apple has approved a $45 million target restricted-stock award for fiscal 2027. Together, those figures represent a $47 million target compensation opportunity.
Cook became Apple CEO in 2011 after previously serving as the company’s chief operating officer. During his tenure, Apple’s annual sales rose from about $108 billion in fiscal 2011 to $416.2 billion in fiscal 2025, while the company expanded its portfolio across hardware and services.
Apple said Cook will remain involved with the company as executive chairman, while Ternus joins the board as CEO. Arthur Levinson, who served as Apple’s non-executive chairman for 15 years, has become the board’s lead independent director.
What Ternus Inherits At Apple
The leadership change comes as Apple continues to report strong financial results. In its fiscal 2026 third quarter, iPhone, Mac and Services revenue each reached June-quarter records, while total company revenue rose 16% from a year earlier to $109.4 billion.
At the same time, Ternus inherits responsibility for Apple’s next phase of product development and technology strategy. Reuters has reported that his tenure begins as Apple works to strengthen its position in artificial intelligence and adjust its manufacturing footprint, including greater production in India and Vietnam.
For now, the compensation filing puts a clear number on the financial terms of the succession. Ternus’ FY2027 target package is $58 million, while Cook’s new target compensation opportunity is $47 million. The larger share of both packages remains tied to equity rather than fixed salary as Apple begins its post-Cook leadership era.
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