Apple has recently entered a new chapter with John Ternus succeeding Tim Cook as CEO. As part of this transition, the company has released the compensation packages for both Ternus and Cook in a filing with the US Securities and Exchange Commission (SEC) on September 1, 2026. This announcement coincided with the start of Ternus’s new role, marking a significant moment for the tech giant.

Compensation Packages Revealed

According to the disclosed information, John Ternus’s target compensation for the fiscal year is approximately $58 million, equivalent to around Rs 551 crore. This package comprises a base salary of $3 million and stock awards estimated at $55 million for the coming year. In contrast, Tim Cook, who has transitioned to the role of executive chairman, will earn an approximate total of $47 million, or Rs 446 crore, including a $2 million annual salary alongside stock awards valued at $45 million for fiscal 2027.

Tim Cook previously held a similar salary of $3 million as CEO, although his earnings reached about $74.3 million in 2025 when accounting for performance-based cash and stock awards. His new compensation package as executive chairman reflects a notable decrease in income as he steps back from the CEO position.

The stock awards for both executives are subject to fluctuations based on Apple’s share price, with the filing not specifying any new cash bonuses for the upcoming fiscal periods. Additionally, Ternus will receive a prorated restricted stock unit award valued at around $2.5 million for the fiscal year 2026, which is set to conclude in September.

Details of Stock Awards and Performance Metrics

Of Ternus’s larger equity award in fiscal 2027, 75 per cent will be performance-based restricted stock units (RSUs), tied to Apple’s total shareholder return in comparison to other firms within the S&P 500. The remaining 25 per cent will be time-based RSUs, which will vest in equal semi-annual increments over a four-year period. This structure ties his compensation closely to the company’s market performance.

Meanwhile, Tim Cook’s fiscal 2027 equity award will consist of half performance-based RSUs and the other half as time-based RSUs, with a similar four-year vesting timeline. Notably, Cook’s proportion of performance-based awards is less than that of Ternus, reflecting the differing nature of their roles within the organisation.

Another aspect of Cook’s agreement stipulates that should he retire after the first anniversary of the grant date, he will still retain his shares but will receive them on the original vesting dates. Typically, executives forfeit their stock awards upon departure from a company, making this provision less common in such agreements.

Significance of the Change in Leadership

The transition of power from Tim Cook to John Ternus marks only the second change in the CEO position at Apple in this century. Cook took over the role in August 2011 following the resignation of co-founder Steve Jobs. Over his 15-year leadership, Cook played a pivotal role in elevating Apple’s valuation from $350 billion to over $4.5 trillion, solidifying the company’s status as a technological leader.

The change in leadership arrives at a crucial time for the company as it aims to maintain its trajectory within the competitive tech landscape. The new compensation structures for Ternus and Cook reflect the respective priorities and performance expectations as Apple continues to navigate its future operations.

As Apple embarks on this new journey under John Ternus, both executives are poised to focus on sustaining the company’s industry prominence while implementing strategic plans to advance its market standing.

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