Apple has announced that John Ternus, the newly appointed CEO, will have a target compensation of $58 million. This figure was revealed in an updated SEC filing, marking a significant moment in the company’s leadership transition.
Details of Ternus’ Compensation Package
Ternus’ compensation for fiscal 2027 includes a base salary of $3 million and an annual equity award valued at $55 million. The equity award is structured such that a quarter is time-based, vesting semiannually over four years. The remaining portion of the restricted stock units (RSUs) will vest based on Apple’s total shareholder return compared to other companies in the S&P 500. This performance-based structure mirrors the long-standing compensation model used for former CEO Tim Cook.
Tim Cook’s Transition and Compensation
As Ternus steps into his new role, Tim Cook transitions to executive chairman with a target compensation of $47 million. Cook’s new salary is set at $2 million, complemented by an equity award with a target value of $45 million for fiscal 2027. Similar to Ternus, Cook’s equity will also be divided between time-based and performance-based vesting.
Performance-Based Bonuses and Historical Context
It is important to note that the target compensation figures for both Ternus and Cook do not account for performance-based bonuses, which could alter their final earnings for fiscal 2027. In 2025, Cook’s total earnings reached $74.3 million, which included a $3 million salary, $12 million in performance-based cash awards, and $57.5 million in stock awards.
Implications for Executive Compensation Trends
This announcement highlights ongoing discussions around executive pay, particularly in large corporations like Apple. The board’s compensation committee plays a crucial role in determining these figures, focusing on attracting and retaining leadership that can drive shareholder value. While the high compensation levels may raise eyebrows, they are often justified by the potential for significant returns on investment for shareholders.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
