Apple's new chief executive John Ternus has taken over from Tim Cook as the company enters a new phase of leadership. Ternus became CEO on September 1 after serving as Apple's senior vice president of Hardware Engineering, while Cook moved into the executive chairman role after 15 years as CEO.
The leadership change also brings different compensation arrangements for the two executives. Ternus' new salary is higher than Cook's as executive chairman, while both will receive substantial equity awards whose eventual value depends in part on how Apple's performance compares with other companies.
Ternus will also receive a separate equity award covering his time as CEO during Apple's fiscal 2026. Cook's new arrangement reflects his continued role at Apple despite stepping away from the top executive position.
The company's filings provide a detailed breakdown of the equity awards for both executives, offering a clear comparison between their new roles and Cook's previous compensation as CEO.
Ternus Gets $58 Million Target Package
Apple increased Ternus' annual salary to $3 million (£2.2 million) when he became CEO on September 1. The company also approved an annual equity award with a target value of $55 million (£40.7 million) for fiscal 2027.
Three-quarters of that equity award will consist of performance-based restricted stock units. Their vesting will depend on Apple's total shareholder return compared with other companies in the S&P 500. The remaining 25 per cent will be made up of time-based restricted stock units, which will vest in equal semiannual instalments over four years.
Ternus will also receive a separate prorated restricted stock unit award with a target value of $2.5 million (£1.9 million) for his period as CEO during fiscal 2026. That award is separate from the fiscal 2027 equity award.
When Ternus' $3 million (£2.2 million) salary is combined with the $55 million (£40.7 million) fiscal 2027 equity award, the total is about $58 million (£43 million). This is a combined salary and target equity calculation, rather than a guaranteed annual payout.
Cook's New Pay Is Lower, but Still Substantial
Cook's compensation structure changes as he moves from CEO to executive chairman. His annual salary will be $2 million (£1.5 million), effective September 26, down from $3 million (£2.2 million) as CEO. Apple has also approved a fiscal 2027 equity award with a target value of $45 million (£33.3 million).
Half of Cook's new equity award will consist of performance-based restricted stock units linked to Apple's total shareholder return against other S&P 500 companies. The other half will be time-based restricted stock units that vest semiannually over four years.
Combining Cook's $2 million (£1.5 million) annual salary with the $45 million (£33.3 million) target value of his fiscal 2027 equity award gives a combined figure of about $47 million (£34.8 million).
Cook's reported compensation as CEO was considerably higher. Apple said he received total compensation of $74.3 million (£55 million) in 2025, including salary, stock awards, performance-based compensation, and other compensation.
Apple announced the succession plan in April, with Ternus named as Cook's successor. The transition took effect on September 1, formally ending Cook's 15-year tenure as CEO.
