Apple's new CEO John Ternus faces $58 million package tied to S&P 500 outperformance
Apple disclosed that chief executive John Ternus will receive roughly $58 million in compensation, most of which depends on the company's total shareholder return beating the S&P 500.
Apple filed details of its executive pay structure, revealing that new chief executive John Ternus will earn a $3 million annual salary and a stock award projected at $55 million for fiscal 2027, bringing his total package to about $58 million when a prorated $2.5 million grant for fiscal 2026 is added. Most of the award—three-quarters—is performance-driven, requiring Apple’s total shareholder return to exceed that of the S&P 500 before the shares vest.
The balance is time-based, vesting semi-annually over four years and fluctuating with Apple’s market value. Tim Cook transitions to executive chairman with a $2 million salary and a $45 million equity target, with only half of his stock tied to S&P 500 performance. Cook’s 2025 compensation was $74.3 million, and he holds over three million Apple shares. Ternus, previously head of hardware engineering, steps into the role just before the upcoming iPhone launch, where a foldable model and refreshed accessories are expected.
Why it matters
The pay plan links Apple’s top leadership rewards to market performance, influencing investor expectations and corporate strategy.
How this story developed
- Aug 31 Apple appoints John Ternus as CEO to steer the firm into AI era
- Sep 1 Tim Cook stepped down as CEO and became executive chairman, appointing John Ternus as his successor.
- Sep 1 Epic Games founder Tim Sweeney publicly urged Apple under Ternus to expand its hardware and software landscape for the benefit of the broader app ecosystem.
- Sep 2 SEC filing reveals details of John Ternus’s compensation package.
- Sep 3 Industry peers posted public congratulations to Ternus on X following his appointment.
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