John Ternus Is Taking Tim Cook’s $74 Million-a-Year Job, but Apple Is Making Its New CEO Earn Most of His $58 Million the Hard Way

Apple has disclosed that new CEO John Ternus will earn a target compensation of $58 million in fiscal 2027, according to an SEC filing published Tuesday, the same day Ternus officially took over from Tim Cook.

The package includes a $3 million base salary and an equity award targeted at $55 million.

A quarter of that equity is time-based, vesting semiannually over four years. The remaining three-quarters consists of restricted stock units tied to Apple’s total shareholder return relative to the S&P 500, a structure Apple has used for Cook’s compensation for years.

Apple also granted Ternus a prorated RSU award worth $2.5 million for fiscal 2026, covering the portion of the year he served as CEO.

Because Ternus previously served as Apple’s senior vice president of hardware engineering, his compensation in that role was never publicly disclosed. Tuesday’s filing marks the first time his pay has been reported.

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Cook’s new arrangement

Cook, who transitions to executive chairman, is set to receive a $2 million salary, along with an equity award targeting $45 million in fiscal 2027.

That equity is split evenly: half is time-based and vests over four years, while the other half is performance-based and vests based on Apple’s stock performance.

If Cook retires on or after the first anniversary of the grant date, his equity will vest, though he won’t receive the actual shares until the originally scheduled vesting dates.

Cook’s total target compensation as executive chairman comes to $47 million, roughly $11 million less than Ternus’ package.

In his final full year as CEO, Cook earned $74.3 million, which included a $3 million salary, $12 million in performance-based cash awards, and $57.5 million in stock awards.

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Performance-based upside

The target figures for both executives exclude performance bonuses, meaning actual payouts in fiscal 2027 could land higher or lower depending on Apple’s results.

The heavy weighting toward equity tied to shareholder return means Ternus stands to earn significantly more if Apple outperforms the broader S&P 500, and considerably less if it doesn’t.

Ternus joined Apple in 2001 and led hardware engineering before being named CEO. He is 51, leaving open the possibility of a lengthy tenure at the top of the company.