Apple Details Compensation for New CEO John Ternus and Executive Chairman Tim Cook

Apple has set the compensation for incoming Chief Executive Officer John Ternus and detailed a new pay structure for Tim Cook, who will transition to the role of Executive Chairman, according to a regulatory filing on Tuesday. The disclosure formalizes the financial terms of a major leadership succession at the world's most valuable technology company.

New Leadership Compensation

The company disclosed that John Ternus, who formally takes over as CEO on September 1, will receive an annual base salary of $3 million. His compensation is heavily weighted toward long-term incentives, including:

• A prorated restricted stock unit (RSU) award with a target value of $2.5 million for fiscal 2026.
• An annual equity award with a target value of $55 million for fiscal 2027.

Tim Cook will become Apple's Executive Chairman and receive an annual salary of $2 million, effective September 26, 2026. The company also approved a fiscal 2027 equity award for Cook with a target value of $45 million, ensuring his continued alignment with the company's long-term performance.

A Major Transition

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The leadership change marks the end of Tim Cook's 15-year tenure as CEO, a period of immense growth for Apple. Ternus, a company veteran who joined in 2001, has most recently served as the head of hardware engineering, overseeing the development of core products like the iPhone, Mac, and Apple Vision Pro.

In his new role as Executive Chairman, Cook is expected to remain actively involved in specific areas, including the company's engagement with policymakers. This structure allows Apple to retain his institutional knowledge and strategic guidance during the transition.

Context for Investors

The new compensation packages maintain Apple's focus on equity-based, long-term incentives for its top executives. For comparison, Cook's total compensation in fiscal 2025 was $74.3 million, which included a $3 million salary, $12 million in performance-based pay, and $57.5 million in stock awards, as noted in a previous proxy filing.

Ternus's appointment comes as Apple navigates significant strategic challenges, including intensifying competition in artificial intelligence and ongoing efforts to diversify its manufacturing supply chain beyond China. The new leadership structure and compensation are designed to steer the company through its next phase of innovation and growth.