Apple to pay new CEO John Ternus $3 million annual salary

The new salary took effect on September 1, the date Ternus formally became CEO. Apple had previously announced its leadership transition in April.

In addition to his salary, Ternus received a prorated restricted stock unit award with a target value of $2.5 million for his service as CEO during fiscal 2026.

Apple’s board compensation committee also approved an annual equity award for Ternus worth a target $55 million, which is expected to be granted in fiscal 2027.

Of that award, 75% will consist of performance-based restricted stock units linked to Apple’s total shareholder return compared with other companies in the S&P 500. The remaining 25% will be time-based shares that vest in equal installments over four years.

The filing also detailed compensation for Tim Cook, who became Executive Chair of Apple’s Board of Directors as part of the leadership transition.

Cook will receive an annual salary of $2 million starting September 26, along with an equity award worth a target $45 million in fiscal 2027. Half of the award will be performance-based, while the other half will vest over four years.

Apple said Cook’s equity award may continue to vest after retirement if he leaves the company on or after the first anniversary of the grant date, subject to performance conditions for the performance-based portion.

Earlier, Qazinform News Agency reported on a new hardware leasing program that allows customers to lease iPhones, Apple Watches, Macs, and iPads.