Apple Reveals Compensation Plans for Tim Cook and John Ternus

Apple's recent SEC filing has shed light on the compensation plans for CEO Tim Cook and incoming Chief Executive John Ternus. The arrangements are part of Apple's leadership transition plan, which was finalized in September 2026.

Ternus, who took over as CEO on September 1, 2026, will receive an annual salary of $3 million (approximately ₹28 crore). In addition to this fixed salary, he will also be granted a prorated restricted stock unit award with a target value of $2.5 million (₹23.6 crore), covering his service as CEO during fiscal 2026.

Ternus' annual equity award for fiscal 2027 has a target value of $55 million (₹519 crore). However, this figure represents the targeted equity value, not his fixed annual salary. The award is subject to performance conditions, with 75% dependent on Apple's total shareholder return against S&P 500 companies.

Cook, who transitioned to Executive Chair of Apple's board in September 2026, will receive an annual salary of $2 million (approximately ₹19 crore). He will also be granted an equity award during fiscal 2027 with a target value of $45 million (₹425 crore), split evenly between performance-based and time-based RSUs.

Interestingly, Cook's equity award includes special retirement-related treatment. If his employment ends through retirement after the first anniversary of the grant, the shares will vest subject to performance requirements for performance-based RSUs.