Apple’s new CEO John Ternus is starting his tenure with a compensation package larger than that of his predecessor, with the company setting his target pay at $58 million for fiscal 2027.
According to an updated regulatory filing, Ternus will receive a $3 million annual salary alongside an annual equity award with a target value of $55 million.
Former CEO Tim Cook, who has moved into the role of executive chairman, will have target compensation of $47 million, putting Ternus’ package $11 million above Cook’s.
The figures do not necessarily represent the executives’ final earnings, as actual compensation can vary depending on Apple’s performance and the value of equity awards.
Most of Ternus’ Compensation Comes in Apple Stock
The overwhelming majority of Ternus’ target compensation is tied to Apple shares rather than cash salary.
His $55 million annual equity award is designed to align his financial incentives with the company’s long-term performance. According to the filing, 25% of the award is time-based, with those shares scheduled to vest semiannually over four years.
The structure means that while the headline package is worth $58 million, Ternus will receive only a relatively small portion directly as salary. Most of his potential wealth from the position will depend on equity awards and Apple’s stock performance.
Performance-based incentives could push his total compensation higher if the company meets or exceeds its targets.
Ternus Takes Over From Tim Cook
The compensation package accompanies one of the most important leadership transitions in Apple’s history.
Ternus takes control of a company that grew dramatically during Cook’s tenure, becoming one of the world’s most valuable corporations and expanding far beyond its traditional hardware business into services, wearables and other products.
Cook is not leaving Apple entirely. His transition to executive chairman allows him to remain involved with the company while handing day-to-day leadership to Ternus.
The new structure also means Apple will continue benefiting from Cook’s institutional experience as Ternus assumes responsibility for the company’s operations and long-term strategy.
Apple Places a Major Bet on Its New CEO
Ternus has spent years inside Apple’s hardware organization and most recently served as senior vice president of hardware engineering.
His promotion puts him in charge at a critical moment for the company as Apple navigates increasingly intense competition in artificial intelligence, consumer hardware and digital services.
The size and structure of his compensation package reflect the importance Apple is placing on retaining its new chief executive and tying his financial rewards directly to shareholder returns.
At the $58 million target level, Ternus’ compensation works out to roughly $159,000 per day when spread across an entire year, although that comparison is largely theoretical because most of the package consists of equity rather than cash.
For Apple investors, the more important question will be whether Ternus can generate enough growth and shareholder value to justify a compensation package that, from his first year in charge, already exceeds that of the executive he replaced.
