Apple has simply kickstarted a brand new period with John Ternus taking the reins from Tim Cook. As John Ternus leads the company as CEO, Apple has disclosed the brand new pay packages for Ternus and Prepare dinner, who’s taking on a brand new function. Apple’s new CEO has a goal compensation of about $58 million (roughly Rs 551 crore) for this fiscal yr, whereas Tim Prepare dinner will obtain about $47 million (roughly Rs 446 crore) as govt chairman.
In a brand new submitting with the US US Securities and Change Fee (SEC) on Tuesday, Apple disclosed the brand new compensation packages for Ternus and Prepare dinner. The submitting was made on the identical day John Ternus started his tenure as CEO on the firm.
How a lot are John Ternus and Tim Prepare dinner incomes at Apple?
In easy phrases, Ternus’ package deal is made up of a $3 million annual wage and inventory awards focused at $55 million subsequent yr. Prepare dinner’s package deal features a $2 million annual wage and deliberate inventory awards value $45 million in fiscal 2027. Needless to say as CEO, Tim Cook had a $3 million wage. The previous Apple CEO additionally earned about $74.3 million final yr. That’s, he takes a a lot smaller package deal dwelling as govt chairman.
The worth of these inventory awards given to Ternus and Prepare dinner can rise or fall with Apple’s share value. The submitting didn’t set out any new money bonus figures.
Ternus, Apple says, will even obtain a prorated restricted inventory unit, or RSU, award value about $2.5 million in fiscal yr 2026, which runs via September. Of his bigger fiscal 2027 fairness award, 75 per cent might be performance-based RSUs linked to Apple’s whole shareholder return relative to different corporations within the S&P 500, whereas 25 per cent might be time-based RSUs that vest in equal semi-annual instalments over 4 years.
In plain phrases, most of Ternus’ inventory award will rely upon how Apple performs in opposition to different massive listed US corporations, whereas the remaining will vest over time. Whereas Apple has not disclosed Ternus’ wage as senior VP, it’s believed that he was incomes round $25 million (roughly Rs 237 crore) in his earlier function on the firm.
However, half of Prepare dinner’s fiscal 2027 fairness award might be performance-based, with the opposite half made up of time-based RSUs vesting over 4 years. The portion of performance-based awards for Prepare dinner is lower than Ternus.
The submitting additionally says that if Tim Prepare dinner retires on or after the primary anniversary of the grant date, he’ll nonetheless obtain the shares however solely on the unique vesting dates. Often, when an govt leaves the corporate, their shares are forfeited, however that may not be the case for Prepare dinner.
In 2025, Tim Prepare dinner’s pay package deal as CEO was $74.3 million, together with a $3 million wage, $12 million in performance-based money awards and $57.5 million in inventory awards.
Prepare dinner’s handover to Ternus marks solely the second change in chief govt at Apple this century. Tim Prepare dinner was appointed Apple CEO in August 2011, as he succeeded Apple co-founder Steve Jobs. Throughout his 15-year tenure as CEO, Prepare dinner helped enhance Apple’s valuation from $350 billion to over $4.5 trillion.
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