Ternus Tops Cook in Salary, But Performance-Based Awards Give Executive Chair Edge

Apple's new CEO John Ternus could still earn less than Tim Cook under certain conditions, despite receiving a higher salary and equity award. Cook stepped down as CEO on September 1st but remains Apple's executive chair.

The two executives' compensation arrangements were disclosed in a US Securities and Exchange Commission (SEC) filing on the same day. Ternus has a fiscal 2027 salary of $3M (£2.2M) and an annual equity award of $55M (£41M), totaling $58M (£43M). Cook, as executive chair, will receive a $2M (£1.5M) salary and a $45M (£34M) annual equity award, for a total of $47M (£35M).

The value of their compensation comes mainly from Apple shares, rather than salary. Ternus has 75% of his equity award tied to performance, while Cook has 50%. This means that if Apple's performance-based awards pay little or nothing, Cook could receive more from his salary and equity even though he is no longer CEO.

Cook also has a retirement provision that Ternus does not have. The contrast between the two executives' compensation arrangements remains unusual, with Apple giving the new CEO a larger share of performance-linked equity while giving the executive chair a larger share that does not depend on performance.