Apple’s new CEO John Ternus is poised to receive an annual pay package of $58 million after officially taking over the reins of the tech giant from Tim Cook on Tuesday.
Per a new SEC filing, Ternus’ package includes a $3 million annual salary. He will also receive a one-time, prorated restricted stock unit (RSU) award with a target value of $2.5 million for his service as CEO in fiscal 2026.
Additionally, Ternus has been approved for an annual equity award with a target value of $55 million to be granted in fiscal 2027.
Approximately 75% of the award will be granted in performance-based RSUs that vest based on Apple’s total shareholder return relative to other companies in the S&P 500, while the other 25% will be granted in the form of time-based RSUs that vest semiannually in equal installments of 12.5% over four years.
Meanwhile, Cook, who transitioned to the role of executive chair, will receive an annual salary of $2 million and an annual equity award with a target value of $45 million to be granted in fiscal 2027.
Half of the equity award will be performance-based RSUs, while the other half will be time-based RSUs.
In the event of Cook’s termination due to retirement on or after the first anniversary of the grant date, his equity award will vest, subject to performance for the performance-based RSUs, but will continue to settle on the originally scheduled vesting dates.
The transition marks the end of Cook’s 15-year-run as Apple co-founder Steve Jobs’ anointed successor. During his tenure, the company expanded its portfolio of devices, including the launch of the Apple Watch, AirPods and the Vision Pro headset. He also oversaw the launch of streaming service Apple TV in 2019.
Ternus takes over the CEO role as Apple is contending with the rapid evolution of AI and increased competition from companies like OpenAI. He also will be responsible for steering Apple’s future in the entertainment space. Prior to his appointment as CEO, Ternus served as senior vice president of hardware engineering.
In addition to Ternus’ promotion, Apple’s Services Vice President Eddy Cue, who oversees Apple TV, will add the app store to his purview.
