Apple disclosed in regulatory filings that the target compensation for its new CEO John Ternus for fiscal year 2027 is approximately $58 million, consisting of a $3 million base salary and a target value of $55 million in annual restricted stock awards.

Of the $55 million stock award, 75%, or $41.25 million, is performance-based restricted stock units, with vesting conditions tied to Apple's total shareholder return relative to S&P 500 companies; the remaining 25%, or $13.75 million, is time-based restricted stock units, vesting at 12.5% every six months over four years. Therefore, the $58 million is a target value on the grant date and not a guaranteed cash income.

Ternus will also receive a target value of $2.5 million in prorated restricted stock awards to cover his tenure as CEO during fiscal year 2026. Apple will raise his base salary to $3 million per year from the date he officially takes over as CEO.

After Tim Cook transitioned to Executive Chairman, his target compensation for fiscal year 2027 is approximately $47 million, including a $2 million base salary and a target value of $45 million in annual stock awards. Cook's total compensation for fiscal year 2025 was approximately $74.3 million, which included $57.5 million in stock awards, $12 million in performance pay, and a $3 million base salary.

Ternus previously served as Senior Vice President of Hardware Engineering at Apple, overseeing the engineering development of hardware products such as iPhone, iPad, Mac, and AirPods; his succession marks the end of Cook's 15-year tenure as CEO and ushers Apple into a new management phase led by executives with hardware engineering backgrounds.

In terms of market mechanisms, Apple has not locked in the new CEO with a large fixed cash salary but has allocated about 95% of the target compensation for 2027 as stock awards, with most of it tied to relative shareholder returns. The buyers are shareholders hoping Ternus will maintain Apple's excess returns through product cycles, AI strategy, supply chain execution, and capital returns; the sellers are the management team bearing the risk of relative stock performance. If Apple underperforms relative to S&P 500 peers, the actual value and vesting amount of performance-based stock will be pressured; if it outperforms, Ternus and shareholders will benefit together.

Source: Public Information