Apple CEO Compensation Revealed
Apple discloses that new CEO John Ternus will receive a $58 million target compensation package.
Anonymous
Key Points
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Ternus officially assumed Apple’s top role on September 1, 2026, marking the start of his tenure as CEO.
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About 75% of Ternus’ stock awards are tied to Apple’s performance relative to the S&P 500, while the remaining 25% are time-based and vest in equal installments every six months over four years.
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Tim Cook’s fiscal 2027 package includes a $2 million base salary and a stock award with a $45 million target value, with half of the equity award linked to Apple’s performance relative to the S&P 500.
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Bloomberg notes that Apple has not disclosed what Ternus earned in his prior role as senior vice president of hardware engineering, though executives at that level typically receive around $25 million per year when salary, bonuses, and stock are combined.
Apple's new CEO John Ternus will earn about $58 million in fiscal 2027, with a $3 million base salary and $55 million in stock awards Analytics Insight. Ternus took over as CEO on September 1, 2026, replacing Tim Cook, who now serves as executive chairman. Cook's pay drops to $47 million for fiscal 2027 — down from $74.3 million when he was CEO Bloomberg.
Most of Ternus's wealth comes from performance-based stock tied to how Apple performs against the S&P 500 Analytics Insight. About 75% of his equity award depends on Apple beating the broader market, while 25% vests automatically over four years. A prorated $2.5 million restricted stock grant applies for the current fiscal year as he transitions into the role Apple.
Stock Awards Tied Heavily to Apple Performance
Ternus's $55 million stock package is structured to reward results Analytics Insight. Three-quarters of the award hinges on Apple's total shareholder return compared to the S&P 500 over a set period. The remaining quarter vests in equal installments every six months over four years, regardless of market performance Analytics Insight. This design pushes Ternus to focus on beating the broader market, not just hitting internal goals.
Tim Cook Transitions to Executive Chairman Role
Tim Cook's compensation fell sharply as he stepped back from the CEO seat Il Sole 24 Ore. His fiscal 2027 package totals about $47 million, including a $2 million base salary and stock awards Il Sole 24 Ore. This represents a major cut from his 2025 CEO pay of $74.3 million Bloomberg. Half of Cook's equity award is now tied to Apple's S&P 500 performance, mirroring the structure used for other executives.
Ternus's Prior Pay as Hardware Engineering Chief
Before becoming CEO, Ternus served as senior vice president of hardware engineering Bloomberg. Apple has not officially disclosed what that role paid. However, executives at that level typically earn around $25 million per year when combining salary, bonuses, and stock awards Bloomberg. His new CEO package roughly doubles that amount, reflecting the jump in responsibility and seniority.
Apple's Emphasis on Long-Term, Performance-Linked Pay
Apple's pay structure reflects a growing trend in tech: tying executive wealth to how well the company performs Il Sole 24 Ore. Rather than large base salaries, most compensation comes from restricted stock awards that vest over time Il Sole 24 Ore. This approach aligns CEO and shareholder interests, since executives only get full value if Apple's stock outpaces competitors and the broader economy.
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