Apple awards $58 million to new CEO John Ternus. Tim Cook’s pay drops to $47 million

Compared with Ternus, a smaller proportion of Cook’s share-based remuneration will depend on Apple’s relative performance in the markets. 50 per cent of the bonus will consist of performance-based RSUs linked to the company’s total shareholder return relative to other companies in the S&P 500. The remaining 50 per cent will consist of time-based RSUs, vesting in half-yearly instalments of 12.5 per cent over a four-year period.

Apple has also set out a specific condition regarding Cook’s potential departure. Should the executive retire after the first anniversary of the grant date, the shares will continue to vest in accordance with the established terms, including the performance requirements for the performance-related component, and will in any case be settled in accordance with the originally scheduled dates.

The new package represents a reduction compared with the remuneration Cook received as chief executive. In 2025, the executive received a total of $74.3 million: $3 million in salary, approximately $57.5 million in share awards, $12 million through the non-equity incentive scheme and approximately $1.76 million in other forms of remuneration.

However, the 58 million stated for Ternus and the 47 million for Cook do not necessarily represent guaranteed sums in relation to what the two managers will actually receive in 2027. In fact, these figures represent the sum of their basic salary and the target value of their respective share-based awards. The actual value of the awards may vary depending on the performance of Apple shares and, for the performance-based component, on the company’s results relative to those of other S&P 500 companies.

Any cash incentives are also excluded from the calculation. Apple did not specify the amount of these in the document filed with the SEC. More comprehensive information on executive remuneration is normally provided by the company in the documentation prepared for the annual general meeting.

The new remuneration scheme coincides with one of the most significant transitions in Apple’s recent history. Cook is stepping down as chief executive after 15 years, during which the group’s market value rose from around 350 billion to over 4,500 billion dollars. Over the same period, annual revenue grew from $108 billion to $416 billion, whilst profits exceeded $112 billion.

Ternus, who has now been appointed head of hardware engineering at Apple, therefore inherits a company that is much larger than the one entrusted to Cook in 2011, but also faces a number of strategic challenges. Foremost amongst these is artificial intelligence, a sector in which Apple needs to make up ground following delays in the development of new Siri features. Added to this is the need to continue the diversification of the supply chain, reducing dependence on China without squeezing margins.

The process is already underway. Apple has expanded production in India and Vietnam and aims to manufacture the majority of iPhones destined for the US market in India by the end of 2026, whilst some devices, including AirPods and iPads, are also assembled in Vietnam.

Cook’s continued role as executive chairman nevertheless ensures continuity during the transition phase. Ternus takes over the operational leadership of the group, whilst the executive who has guided Apple through its greatest period of economic expansion remains at the helm of the board of directors. The new remuneration structure also reflects this different distribution of responsibilities: for Ternus, 75 per cent of the share-based award will depend on Apple’s relative performance, compared with the 50 per cent envisaged for Cook.