Apple Finalizes Compensation Packages for CEO John Ternus and Executive Chair Tim Cook

Executive Summary

On September 1, 2026, Apple Inc. ($AAPL) filed an amendment to its Form 8-K (Form 8-K/A) to disclose finalized executive compensation packages following the previously announced CEO transition:

1. John Ternus formally assumed the role of Chief Executive Officer (CEO) effective September 1, 2026.
2. Tim Cook transitioned to the role of Executive Chair of the Board of Directors effective September 1, 2026.

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Detailed Compensation Breakdown

1. John Ternus (Chief Executive Officer)

• Annual Base Salary: Increased to $3,000,000, effective September 1, 2026.
• FY 2026 Interim Award: Prorated RSU grant with a target value of $2,500,000 for his period of service as CEO in fiscal 2026.
• FY 2027 Annual Equity Award: Target value of $55,000,000:
  • 75% Performance-Based RSUs: Vesting contingent on Apple's relative Total Shareholder Return (TSR) against the S&P 500.
  • 25% Time-Based RSUs: Vesting semiannually in equal tranches of 12.5% over 4 years.

2. Tim Cook (Executive Chair)

• Annual Base Salary: Adjusted to $2,000,000, effective September 26, 2026.
• FY 2027 Annual Equity Award: Target value of $45,000,000:
  • 50% Performance-Based RSUs: Vesting based on relative TSR vs. S&P 500.
  • 50% Time-Based RSUs: Vesting semiannually in equal tranches of 12.5% over 4 years.
  • Retirement Provisions: In the event of retirement on or after the first anniversary of the grant date, awards continue to vest according to schedule (subject to TSR performance for performance-based RSUs).

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Key Takeaways & Market Impact

• Heavy Performance Alignment: A substantial majority of John Ternus's equity compensation (75%) is performance-contingent based on market outperformance against the S&P 500.
• Smooth Governance Transition: The compensation arrangements formalize Tim Cook's continued strategic oversight role as Executive Chair while establishing long-term incentives for incoming CEO John Ternus.