Full Breakdown
Apple Announces Compensation Packages for New CEO John Ternus and Executive Chairman Tim Cook
9/3/2026, 12:48:40 AM
Core Event – CEO Transition and Pay Packages
Apple’s board filed a securities disclosure confirming John Ternus assumed the CEO role. His package includes a $3 million annual salary and equity grants targeting $55 million for fiscal 2027. Seventy-five percent of the award vests as performance-based RSUs tied to Apple’s total shareholder return versus S&P 500 peers; the remaining 25 percent vests on a schedule of 12.5 % every six months over four years.
Tim Cook, after 15 years as CEO, will remain as executive chairman. Effective September 26, his salary drops to $2 million, and he will receive an annual equity award targeting $45 million for fiscal 2027, split evenly between performance-based and time-based RSUs.
Background & Context – Prior CEO Pay and Board Practices
When Steve Jobs passed away in 2011, the board granted then-CEO Tim Cook a one-million-unit RSU award valued at $376.2 million without performance conditions. In 2013 Cook added performance metrics, creating the split-award structure now used for Ternus.
Data & Statistics – Compensation Figures and Vesting Structure
- John Ternus
- Salary: $3 million per year.
- Fiscal 2026 prorated RSU award: $2.5 million.
- Fiscal 2027 equity target: $55 million.
- Vesting: 75 % performance-based; 25 % time-based (12.5 % semi-annual).
- Holdings: ~34,000 Apple shares (~$11.1 million) plus seven restricted grants covering ~305,000 shares, valued between $50 million and $148 million.
- Tim Cook
- Salary: $2 million per year (effective Sept 26).
- Fiscal 2027 equity target: $45 million, split evenly.
- Prior CEO compensation: ~ $74 million annually, including $14 million in cash bonuses.
Official Statements & Responses – Board Filings and SEC Disclosure
The board said the structures are meant to align executive pay with market performance and ensure continuity as Cook shifts to a policy-focused chairman role. The SEC filing disclosed Ternus’s share holdings and the terms of both executives’ equity awards; no cash bonuses were disclosed.
Conflicting Reports & Gaps – Discrepancies in Total Package Valuations
- Fortune reported Ternus’s equity target at $55 million and an overall package of $58 million including the prorated award.
- Deadline gave the same $58 million figure.
- Thenextweb, citing Bloomberg, listed Ternus’s target at $58 million and Cook’s at $47 million.
These differences arise from how prorated awards and performance ranges are calculated, showing no single universally accepted total-package figure.
Verbatim Quotes
- “Tim Cook has made Berkshire a lot more than I have made Berkshire,” — Warren Buffett
What's Next – Upcoming Milestones
Apple will stream “Surprise and Shine” on September 9, where Ternus will introduce himself to the broader Apple community. Cook’s reduced salary takes effect on September 26, marking the formal start of his executive-chairman duties focused on policy and regulatory engagement.
