- John Ternus became Apple CEO on Sep 1, succeeding Tim Cook after 15 years
- Ternus will earn a $3 million salary and $55 million in stock awards in fiscal 2027
- 75% of Ternus's equity awards depend on Apple's performance versus the S&P 500
John Ternus took over as Apple chief executive officer (CEO) on Tuesday (Sep 1) as Tim Cook stepped down after an illustrious 15-year tenure at the company. In an updated Securities and Exchange Commission (SEC) filing, it has now been revealed that Ternus, 51, will receive a compensation package worth $58 million (Rs 550.2 crore) for fiscal 2027. The new Apple boss will be paid a $3 million (Rs 28.4 crore) annual base salary moving forward and receive a stock grant with a target value of $55 million (Rs 521.7 crore) next year.
As per the filings, Ternus will receive a prorated amount of restricted stock units (RSUs) worth about $2.5 million in fiscal 2026, which runs through September. Meanwhile, 75 per cent of Ternus' equity will be awarded based on Apple's performance in relation to the rest of the S&p 500. The remaining 25 per cent will be tied to time-based stock units that vest semiannually.
"People and Compensation Committee also approved an annual equity award for Mr Ternus with a target value of $55 million to be granted in fiscal 2027. 75 per cent of the equity 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," read the filing.
Meanwhile, Cook's annual salary will be $2 million (Rs 18.9 crore), reduced from the current $3 million as part of the new role. He will earn an equity award with a target value of $45 million (Rs 427.3 crore) in fiscal 2027. Half will be granted in the form of time-based RSUs that vest over four years, and the other half will vest based on Apple's stock performance.
"50 per cent of the equity 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, and 50 per cent will be granted in the form of time-based RSUs that vest semiannually in equal installments of 12.5 per cent over four years," the filing added.
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Cook Hands Over Baton
Cook took charge as CEO in August 2011, succeeding co-founder Steve Jobs and transformed Apple into one of the world's most valuable technology companies. He helped Apple to diversify its portfolio beyond the iPhone to an ecosystem that currently comprises numerous devices, software, subscriptions and financial services.
Under Cook's leadership, Apple's market value surged from around $350 billion to more than $4.3 trillion, representing a roughly 13.3-fold increase. Apple shares have gained around 2,400 per cent during his tenure,
As for Ternus, he joined Apple's design team in 2001 and worked his way up to senior vice president of hardware engineering, reporting to Cook.
He led the engineering teams behind Apple's entire product lineup, including the iPhones that generate most of the company's revenue. However, he gets barely a week to settle in, with Apple holding its annual iPhone event on September 9, where it is expected to unveil its first foldable handset.
