Apple set a pay package worth $58 million for new CEO John Ternus, who formally took the reins from longtime chief executive Tim Cook on Tuesday. His compensation includes a $3 million annual salary and equity grants valued at $55 million to be awarded in the company’s fiscal 2027, which starts in October.
The tech giant disclosed Ternus’ pay, along with Cook’s new contract as executive chairman, in an SEC filling today. Cook’s annual salary will be $2 million, effective September 26. He’ll also receive an equity award for fiscal-year 2027 with a target value of $45 million.
Ternus was granted a prorated restricted stock unit (or RSU) award for his service as CEO in fiscal 2026 valued at $2.5 million.
Watch on Deadline
Apple said 75% of Ternus’ equity award will be granted in performance-based RSUs that vest based on Apple’s total shareholder return relative to other companies in the S&P 500, and 25% will be granted in the form of time-based RSUs that vest semiannually in equal installments of 12.5% over four years.
Apple announced in April that Cook would be stepping down after 15 years as CEO and named Ternus, a 25-year Apple veteran and the company’s head of hardware engineering, his successor. It was a smooth transition, with the two working closely over the summer ahead of the handoff.
Cook will now focus in large part on engaging with policymakers around the world amid a particularly challenged landscape for global business. He led his last quarterly earnings call July 30. The well-liked executive, who followed the late Apple founder Steve Jobs as CEO, oversaw a surge in the company’s valuation from a share price under $15 to over $300, repping a jump in market capitalization from about $350 billion to $4.7 trillion over his tenure.
While devices led by the iPhone remain Apple’s core business, Cook made enormous progress developing recurring revenue streams through a growing family of subscription businesses, including Apple TV, under the now giant Services division.
Ternus will introduce himself to the broad Apple community at a special streaming event September 9 the company is calling Surprise and Shine.
