Apple has embarked on a transformative journey with John Ternus ascending to the position of Chief Executive Officer, succeeding Tim Cook.
Following this pivotal leadership change, Apple has unveiled the remuneration packages for both Ternus and Cook, who is transitioning to a new role.
As the newly appointed CEO, Ternus has a target compensation of approximately $58 million (around ₹551 crore) for the current fiscal year, while Tim Cook will receive an estimated $47 million (roughly ₹446 crore) as executive chairman.
In a recent filing with the United States Securities and Exchange Commission (SEC) on Tuesday, Apple provided insight into the compensation packages designated for Ternus and Cook. Notably, this disclosure coincides with the commencement of John Ternus’s tenure as CEO.
Compensation Details for Ternus and Cook
Simply put, Ternus’s package comprises a $3 million annual salary supplemented by stock awards projected at $55 million for the upcoming year.
In contrast, Cook’s package encompasses an annual salary of $2 million alongside intended stock awards valued at $45 million for fiscal 2027.
It is worth noting that during his previous role as CEO, Tim Cook earned a $3 million salary and accrued approximately $74.3 million last year. Consequently, his current earnings as executive chairman represent a significant reduction.
The valuation of stock awards allocated to both Ternus and Cook is contingent upon the fluctuating share price of Apple. The filing refrained from specifying any new cash bonus figures.
Further, Ternus will also receive a prorated restricted stock unit (RSU) award valued at around $2.5 million for the fiscal year 2026, ending in September.
Of his more extensive fiscal 2027 equity award, 75 percent will be contingent upon performance-based RSUs correlated with Apple’s total shareholder return in comparison to other corporations within the S&P 500, while the remaining 25 percent will consist of time-based RSUs that will vest in equal semi-annual installments over a four-year duration.
In essence, the majority of Ternus’s stock award will rely on Apple’s performance vis-à-vis other prominent publicly traded U.S. firms, while a portion will vest over time.
Although Apple has not disclosed Tim Cook’s salary from his prior role as senior vice president, it is speculated that he earned in the vicinity of $25 million (approximately ₹237 crore).
Conversely, half of Cook’s equity award for fiscal 2027 will be performance-based, with the remaining half constituted of time-based RSUs vesting over a four-year period. Notably, the performance-based segment of Cook’s awards is comparatively less than that of Ternus.
The filing elucidates that should Tim Cook retire on or after the first anniversary of the grant date, he will still acquire the shares, albeit exclusively at the original vesting milestones.
Typically, when an executive departs, their shares may be forfeited, but this regulation alters that for Cook.
Notably, in 2025, Tim Cook’s CEO compensation amounted to $74.3 million, which included a $3 million salary, $12 million in performance-based cash awards, and $57.5 million in stock awards.
The succession of Cook to Ternus marks only the second executive transition at the helm of Apple this century.
Tim Cook was appointed as Apple CEO in August 2011, succeeding co-founder Steve Jobs. Throughout his 15-year leadership, Cook significantly augmented Apple’s valuation from $350 billion to over $4.5 trillion.
Source link: Indiatoday.in.
