John Ternus and Tim Cook’s New Apple Compensation Packages, Explained

Apple’s leadership handoff came with two substantial but differently structured compensation plans. New CEO John Ternus received a fiscal 2027 target package of about $58 million, while Tim Cook’s new role as executive chairman carries a target package of about $47 million. Most of both figures comes from equity awards rather than guaranteed salary, so their eventual realized value can be higher or lower. 12

John Ternus’s $58 million CEO package

Ternus’s fiscal 2027 compensation is built around a $3 million annual salary and an annual equity award with a target value of $55 million. Apple also granted him a prorated $2.5 million RSU award for the portion of fiscal 2026 in which he served as CEO. 26

The $55 million fiscal 2027 equity grant is divided into two parts:

• $13.75 million in time-based RSUs, or 25% of the award. These units vest in 12.5% installments every six months over four years. 6
• $41.25 million in performance-based RSUs, or 75% of the award. Vesting depends on Apple’s total shareholder return relative to other S&P 500 companies. 26

Apple’s performance-based RSUs are not guaranteed at their target value. The company’s disclosed framework allows between 0% and 200% of target units to vest depending on relative total shareholder return. 2

That structure makes the headline figure better understood as a compensation target than as Ternus’s guaranteed yearly income. His salary represents only a small portion of the package; the majority depends on stock value and performance outcomes.

Tim Cook’s $47 million executive-chairman package

Cook’s compensation falls from his CEO-level target as he moves into the executive-chairman role. Apple set his fiscal 2027 package at about $47 million, consisting of a $2 million annual salary effective September 26 and a $45 million target equity award. 1510

Cook’s new equity award is split evenly:

• $22.5 million in time-based RSUs
• $22.5 million in performance-based RSUs 5

The time-based portion follows the same general four-year schedule, vesting in 12.5% installments every six months. The provided disclosures and reporting do not establish the specific post-retirement vesting provisions for Cook’s new fiscal 2027 award. His performance-based equity remains subject to award conditions, and Apple’s historical performance-RSU plans have used relative total shareholder return with vesting ranging from 0% to 200% of target. 2

How Cook’s new package compares with his 2025 pay

Cook’s reported total compensation for fiscal 2025 was $74.3 million, including $57.5 million in stock awards, a $3 million salary and other compensation items.

Against that figure, his new $47 million target is approximately $27.3 million lower, or about 37% below his 2025 total. The comparison is not perfectly like-for-like: Cook’s 2025 figure was realized total compensation and included items beyond salary and stock awards, while the new figure is a target for fiscal 2027. His 2025 salary and stock awards alone totaled roughly $60.5 million.

The more useful comparison is therefore structural. Cook is receiving a lower salary and a smaller equity target, but the package still keeps a large portion of his compensation tied to Apple stock and performance rather than fixed cash.

What the pay plans say about Apple’s succession strategy

The compensation changes took effect alongside a succession plan Apple announced in April 2026. Ternus became CEO on September 1 after serving as Apple’s senior vice president of hardware engineering, while Cook moved to executive chairman after 15 years as CEO. 42

Apple’s approach preserves continuity in how senior executives are paid: substantial equity awards, a meaningful performance-based component and vesting that extends over multiple years. Earlier Apple disclosures describe the company’s use of relative shareholder returns and long-term equity as a way to connect executive compensation with performance and shareholder interests. 1

For Ternus, the unusually large equity component places the emphasis of his new role on Apple’s long-term stock performance. For Cook, the $47 million target signals that the transition is a change in responsibilities rather than an immediate departure from the company, while the precise treatment of his new awards after retirement remains unclear from the available evidence.