Apple has revealed the compensation packages for its new CEO, John Ternus, and outgoing CEO, Tim Cook, who transitions to executive chairman. Ternus's target compensation for fiscal year 2027 is set at $58 million. This includes a $3 million annual salary and an annual equity award with a target value of $55 million. Additionally, he received a prorated restricted stock unit (RSU) award of $2.5 million for his CEO tenure during fiscal 2026. Seventy-five percent of his stock compensation is performance-based, linked to Apple's total shareholder return relative to the S&P 500, with the remaining 25% vesting semiannually over four years based on time.
Tim Cook, in his new role as executive chairman, will have a target compensation of $47 million for fiscal year 2027. His annual salary will be $2 million, a reduction from his previous $3 million as CEO. Cook's compensation package includes an equity award with a target value of $45 million. This equity is split evenly, with 50% being performance-based RSUs tied to Apple's stock performance compared to the S&P 500, and the other 50% being time-based RSUs vesting over four years. If Cook retires on or after the first anniversary of the grant date, his equity awards will still vest according to performance conditions, with shares delivered on their originally scheduled dates.
These target compensation figures do not account for potential performance-based cash bonuses, meaning the final amounts earned by both executives in fiscal 2027 could differ. For comparison, in 2025, Cook's total compensation as CEO was $74.3 million, comprising a $3 million salary, $12 million in performance-based cash awards, and $57.5 million in stock awards. This marks the first public disclosure of compensation for Ternus, whose previous pay as senior vice president of hardware engineering was not shared. Industry estimates for similar management-level executives in his prior role were around $25 million annually.
