8 hrs ago
Apple Sets New CEO John Ternus and Tim Cook Pay
John Ternus is now Apple’s CEO after Tim Cook led the company for 15 years.
Ternus will receive a $3 million yearly salary.
He will also receive a stock award targeted at $55 million for fiscal 2027.
He has another stock grant worth about $2.5 million for fiscal 2026.
These stock awards are not guaranteed cash because their value can change with Apple’s share price.
Most of Ternus’s larger award depends on how Apple performs compared with other S&P 500 companies.
Tim Cook will remain at Apple as executive chairman.
Cook will receive a $2 million salary and planned stock worth $45 million.
Ternus takes over as Apple faces a mature smartphone market and strong competition in artificial intelligence.
John Ternus became Apple CEO on September 1, succeeding Tim Cook after 15 years.
Ternus will receive a $3 million salary and a fiscal 2027 equity award targeted at $55 million.
Ternus will also receive a prorated restricted-stock-unit grant worth about $2.5 million for fiscal 2026.
Tim Cook will receive about $47 million as executive chairman, including a $2 million salary and $45 million in planned equity.
Apple created the executive-chair role for Cook, while Arthur Levinson became lead independent director.
- Who
- Apple, CEO John Ternus, executive chairman Tim Cook, and lead independent director Arthur Levinson.
- What
- Apple changed its chief executive and disclosed compensation packages for Ternus and Cook.
- Where
- The compensation details were disclosed in a filing with the United States Securities and Exchange Commission.
- When
- The transition and Securities and Exchange Commission filing occurred on September 1, described in the articles as Tuesday.
- Why
- Apple appointed Ternus as CEO while retaining Cook as executive chairman, with Cook expected to assist with company affairs and policymaker engagement.
Continuity Through Cook
Change Under Ternus
Cook’s continuing role
Continuity Through Cook
Cook’s newly created executive-chair position, policymaker responsibilities, and substantial equity package indicate that he is expected to remain actively involved at Apple.
Change Under Ternus
Ternus is now CEO and has formal responsibility for leading Apple, while Cook no longer holds the chief executive position.
Leadership direction
Continuity Through Cook
Cook’s relationships with policymakers in the United States and China could help Apple manage political and manufacturing pressures.
Change Under Ternus
Ternus’s hardware-engineering background could support a more product- and engineering-focused approach as Apple responds to artificial-intelligence competition.
Compensation incentives
Continuity Through Cook
Cook’s approximately $47 million package reflects the continuing importance of his experience and responsibilities, despite being below his former CEO compensation.
Change Under Ternus
Ternus’s equity award has a larger performance-linked component, tying more of his compensation to Apple’s relative shareholder returns.
Key facts
- Ternus salary
- $3 million annually as Apple CEO.
- Ternus fiscal 2027 equity
- A target award valued at $55 million, bringing his stated fiscal 2027 target compensation to about $58 million before any unspecified cash bonuses.
- Ternus fiscal 2026 grant
- A prorated restricted-stock-unit grant valued at approximately $2.5 million.
- Ternus equity structure
- Seventy-five percent is performance-based against other S&P 500 companies; 25% is time-based and vests in equal semiannual installments over four years.
- Cook compensation
- Approximately $47 million as executive chairman, including a $2 million salary and $45 million in planned fiscal 2027 equity.
- Cook equity structure
- Half is performance-based and half is time-based, with the time-based shares vesting over four years.
- Cook’s previous compensation
- Approximately $74.3 million as Apple CEO in fiscal 2025, including a $3 million salary, $12 million in performance-based cash awards, and $57.5 million in stock awards.
- Board change
- Arthur Levinson moved from non-executive board chair to lead independent director.
Quotes
Apple's People and Compensation Committee
Apple committee statement quoted in the company's SEC filing
“People and Compensation Committee also approved an annual equity award for Mr Ternus with a target value of $55 million to be granted in fiscal 2027. 75 per cent of the equity award will be granted in performance-based RSUs that vest based on Apple's total shareholder return relative to other companies in the S&P 500”
NDTV
Sources
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