Apple (AAPL) Stock: John Ternus Gets $58M Compensation as New CEO

Key Takeaways

• John Ternus assumed the CEO position at Apple on September 2, securing approximately $58M in total compensation for fiscal year 2027
• The compensation structure features a $3M annual base salary paired with $55M in equity awards, supplemented by a $2.5M prorated stock allocation for his partial-year fiscal 2026 tenure
• Performance metrics drive 75% of his equity compensation, linked directly to Apple’s shareholder returns relative to S&P 500 performance
• Former CEO Tim Cook transitions to executive chairman role with $47M compensation, representing a decrease from his $74.3M CEO package in fiscal 2025
• Ternus faces his inaugural major challenge on September 9, when Apple plans to reveal its iPhone 18 series

Shares of Apple (AAPL) stock slipped 0.17% Tuesday following the company’s submission of executive compensation details to the Securities and Exchange Commission. The disclosure arrived on the same day Ternus formally assumed his CEO duties.

Apple Inc., AAPL

The 51-year-old Ternus begins his tenure with a targeted compensation package totaling $58M for the 2027 fiscal year. The arrangement comprises a $3M base salary combined with equity awards valued at $55M.

Additionally, Ternus was granted a prorated restricted stock unit award worth approximately $2.5M, compensating him for his abbreviated fiscal 2026 service as chief executive.

Performance metrics dominate the equity arrangement. Seventy-five percent of the $55M equity grant depends on how Apple’s total shareholder returns compare against other S&P 500 companies. The other 25% operates on a time-vested schedule, distributing in equal 12.5% increments biannually across a four-year timeline.

Cook Transitions to Executive Chairman

Cook formally transitioned to the executive chairman position on September 2. His revised compensation totals approximately $47M for fiscal 2027, comprising a $2M base salary and $45M in equity awards.

This marks a notable reduction from Cook’s $74.3M total compensation as chief executive in fiscal 2025, with his base salary declining from $3M to $2M annually. Cook’s equity distribution mirrors Ternus’s structure, splitting evenly between performance-linked and time-based components.

According to reporting from the Wall Street Journal, the SEC documentation did not specify potential cash bonus amounts for either executive.

Apple first revealed the leadership transition in April, characterizing it as the culmination of extensive succession planning efforts. Ternus’s Apple career began in 2001, and he earned promotion to senior vice president of hardware engineering in 2021. His responsibilities encompassed overseeing product development for iPhone, iPad, Mac, Apple Watch, AirPods, and Vision Pro platforms.

Inaugural Challenge: September 9 Announcement

Ternus enters his role with minimal preparation time before facing a significant milestone. Apple has scheduled a product unveiling for September 9 at its Cupertino headquarters.

Industry observers anticipate the event will showcase the iPhone 18 product line, updated Apple Watch models, and an overhauled Siri virtual assistant utilizing large language model technology.

On Monday, his final day as CEO, Cook distributed a farewell message to Apple’s workforce. His 15-year leadership tenure saw Apple’s market capitalization expand to $4 trillion while annual revenues climbed beyond $416 billion in fiscal 2025.

The executive compensation documents became publicly accessible Tuesday via SEC channels.

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