Apple’s New CEO Compensation: $3M Salary and $55M Equity Target
Apple’s new CEO, John Ternus, will receive a $3M annual base salary, representing approximately 5% of his total compensation, according to a regulatory filing on September 2, 2026, the same day he assumed the role.
His fiscal 2026 stock award is prorated to $2.5M for the remaining weeks of the year. For fiscal 2027, his annual equity award targets $55M, but his actual payout will depend on performance.
Equity Award Structure
- 75% tied to Apple’s total shareholder return compared to other S&P 500 companies.
- 25% vests over time, with 12.5% paid every six months over four years.
This structure, unlike the headline number, measures Ternus’ performance relative to the broader market, ensuring that his award is smaller if Apple (164news.com's guide to apple) underperforms.
Comparison with Tim Cook’s Compensation
Ternus’ package is similar in size to what Tim Cook, the previous CEO, received. Cook retains the role of Executive Chairman and will earn a $2M salary from September 26, with a fiscal 2027 equity award targeting $45M.
According to Bloomberg, Ternus’ total compensation is estimated at $58M, and Cook’s at $47M. These figures represent targets, not guaranteed payouts, dependent on future performance.
Cook’s New Role and Global Impact
As Executive Chairman, Cook’s responsibilities include engaging with policymakers worldwide, particularly regarding regulatory matters. Apple faces significant challenges, including the Digital Markets Act, antitrust proceedings, and a volatile global trade environment.
The unusual arrangement of keeping a former CEO on a package comparable to the current CEO’s underscores Apple’s recognition of these risks.
Handover and Ternus’ Existing Exposure
The handover on September 2, marked by Cook’s final memo and subsequent executive changes, was efficiently documented in the same filing.
Ternus already holds substantial Apple shares, including 34,000 shares worth $11.1M and seven restricted grants covering 305,000 additional shares, valued between $50M and $148M.