The news
Apple CEO John Ternus took office on September 1, 2026, succeeding Tim Cook, who became executive chairman. An SEC filing that day set Ternus's fiscal 2027 equity award at a $55 million target, 75% tied to Apple (AAPL) shareholder return relative to the S&P 500.
Apple announced the handover on April 20, 2026. Ternus, who joined Apple in 2001, had been senior vice president of Hardware Engineering. Cook had led the company since 2011, and Apple said that as executive chairman he would help with certain parts of the business, including engaging with policymakers around the world. Ternus joined the board on September 1, and chairman Arthur Levinson became lead independent director the same day.
The amended Form 8-K filed on September 1 set out the new pay. Ternus receives an annual salary of $3 million and a prorated restricted stock unit (RSU) award with a target value of $2.5 million for his service in the rest of fiscal 2026. His $55 million fiscal 2027 award is split 75% in performance-based RSUs, which vest based on Apple's total shareholder return relative to other S&P 500 companies, and 25% in time-based RSUs that vest in equal 12.5% installments every six months over four years.
The filing set Cook's salary as executive chairman at $2 million, effective September 26, 2026, and his fiscal 2027 equity award at a $45 million target value, split evenly between performance-based and time-based RSUs. Fortune reported that Cook's salary as CEO had been $3 million.
The handover came a day after reports of another senior change. On August 31, TechCrunch reported, citing Bloomberg, that Phil Schiller had stepped down from running the App Store and Apple's product events and would stay on as an Apple Fellow, with Carson Oliver, who has spent more than 14 years in the App Store division, taking over. TechCrunch said it had asked Apple for more information.
The numbers
- Ternus fiscal 2027 equity award (target value)
- $55 million
- Share of Ternus award that is performance-based
- 75%
- Ternus annual salary
- $3 million
- Ternus prorated fiscal 2026 RSU award (target value)
- $2.5 million
- Cook fiscal 2027 equity award as executive chairman (target value)
- $45 million
- Cook executive chairman salary, from September 26, 2026
- $2 million
Why CEOs should care
For boards and compensation committees, Apple's design is a clear reference point. Three-quarters of the new CEO's annual award depends on how Apple's stock performs against the S&P 500, not on revenue or product targets, and the $55 million is a target that can pay out more or less. Directors setting succession pay should ask whether relative shareholder return fits their strategy, and how they will explain a former CEO's $45 million target as executive chairman to investors.
For partners, suppliers and developers, the more practical question is continuity. Apple now has a CEO who came up through hardware engineering, and, according to TechCrunch's report, new day-to-day leadership at the App Store, the storefront developers use to reach iPhone users. Companies that depend on App Store rules or Apple component orders should ask their Apple contacts who now owns their decisions and whether roadmaps or commercial terms are under review.
For CFOs and investor relations teams at Apple's partners, the filing is also a reminder that most of the new CEO's pay will track shareholder returns, which puts extra weight on Apple's results under Ternus. Ask whether your own forecasts assume any change in Apple's pricing, App Store terms or product timing, and revisit those assumptions once the new team sets its priorities.
The bigger picture
The package is a contrast with Cook's own start. Fortune reported that when Cook succeeded Steve Jobs in 2011, Apple granted him 1 million RSUs valued at $376.2 million on the grant date. Ternus's award is annual and mostly performance-based.
The handover also lands amid wider turnover. TechCrunch listed other recent departures, including chief operating officer Jeff Williams, who retired after 27 years; Apple Pay head Jennifer Bailey, who is set to retire in October; and Paul Meade, the vice president in charge of Vision Pro, who left for OpenAI in June.
What happened next
On September 9, 2026, Ternus appeared as CEO in Apple's announcement of iPhone Duo, its first foldable iPhone, calling it "the most transformational change to iPhone since the original." Under the filing, Cook's $2 million executive chairman salary was set to take effect on September 26. The next leadership date to watch is Jennifer Bailey's planned retirement from Apple Pay in October.
