The Apple board has given its new CEO, John Ternus, a massive new compensation package to kickstart his tenure, with the potential for even bigger payouts in the future. Apart from the huge bump in the pay structure, Ternus took over the new role with a compensation package that could put his stock holdings at more than $148 million. Here’s a closer look at how much Apple’s new CEO could make from his pay and stock awards.
Most of Ternus’ future Apple equity hinges on returns
The Apple board has raised Ternus’ annual salary to $3 million and granted him restricted stock units worth $2.5 million, prorated for the few weeks he’ll serve as CEO before the end of Apple’s 2026 fiscal year. And for fiscal year 2027, the board has approved an annual equity award with a target value of $55 million.
Ternus’ existing Apple holdings add significantly to the new salary package. According to a securities filing, he currently holds about 34,000 Apple shares in a trust, which roughly amounts to $11.1 million at Tuesday’s stock price.
Apart from that, he has seven restricted stock grants covering around 305,000 shares, currently worth at least $99 million, depending on how the shares pay out. Nearly half are performance units that could pay double or nothing, and hence the final payout could range from about $50 million to $148 million.
That puts Ternus’ disclosed stock exposure at roughly $110 million at current value.
His new fiscal 2027 equity award is also heavily tied to performance. About 75% will vest based on Apple’s total shareholder return relative to other S&P 500 companies, while the remaining 25% will vest over four years, at 12.5% per year.
Tim Cook’s salary falls to $2 million
Tim Cook, who, after 15 years as CEO, is sticking around as executive chair while Ternus finds his footing, saw his salary decrease from $3 million to $2 million, effective later this month. The Apple board approved a $45 million target equity award for him, half in RSUs that vest over four years, and half that vest based on performance.
Cook’s total pay package in 2025 as CEO was $74.3 million.
In Tuesday’s filing, Apple didn’t say how much the executives may also receive in cash bonuses, though those are usually valued at about double the base salary. The Cupertino, California-based company typically provides more details ahead of its shareholder meetings early in the year.