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Apple has set annual pay of USD 3 million for new Chief Executive John Ternus as he takes over from Tim Cook. The company will also give Ternus a targeted annual stock award worth USD 55 million for fiscal 2027.
The compensation details come as Apple starts a new leadership phase. Ternus officially became CEO on September 2, while Cook moved into the role of executive chairman. The change also comes before Apple's September product event, where Ternus will make his first major appearance as chief executive.
John Ternus joined Apple in 2001 and most recently served as senior vice president of Hardware Engineering. His background is closely tied to product development, including work across Apple's major hardware businesses.
Apple raised his salary effective on the day he became CEO. Along with the USD 3 million annual salary, Ternus will receive a targeted stock award of USD 55 million for fiscal 2027. The stock component will form the largest part of his compensation package.
In his first memo to employees, Ternus thanked Cook for helping with the leadership transition. He described Cook as a leader who acted with ‘values’ and ‘decency and humanity.’
Ternus also told employees that Apple has a ‘huge launch next week’ that will be ‘phenomenal.’ The comments came days before Apple's September 9 ‘Surprise and Shine’ event.
Ternus used his first company-wide message to focus on Apple's product pipeline. He said he was excited about products already being developed as well as ideas that the company had yet to create.
He wrote that Apple had ‘incredible products already in the works’ and also referred to products the company had ‘not even imagined yet.’ His comments come as Apple prepares for a period of major product and technology changes.
Apple is expected to continue expanding artificial intelligence features across its devices and software. The company is also preparing changes to its iPhone lineup, including new hardware formats expected to play a larger role in its future product strategy.
The September 9 event will therefore provide an early public test for Apple's new leadership structure. Ternus has appeared at previous Apple product presentations, but this will be his first event after becoming CEO.
Cook stepped down as chief executive after leading Apple for 15 years. However, he will remain closely involved with the company as executive chairman.
Before leaving the CEO position, Cook told employees he felt ‘enormous comfort’ handing the company to Ternus. He described his successor as ‘brilliant and wonderful and capable.’
Cook's continued presence gives Apple leadership continuity while Ternus takes control of daily operations. At the same time, Ternus will oversee a management team that has already started changing.
Apple has reorganized several areas during the transition. Johny Srouji has become chief hardware officer and now leads a broader hardware organization that combines teams previously overseen separately by Ternus and Srouji.
The wider management restructuring includes several senior appointments and departures. Former engineering executive Laura Legros has returned to Apple and now reports to Ternus.
Apple has also hired Nate Gatten from American Airlines to lead government affairs. Meanwhile, several longtime executives are approaching retirement, while others have already announced plans to leave.
The hardware division has also seen departures. Brian Lynch, who worked on Apple's smart home hardware, left for Oura earlier this year. Paul Meade, who worked on augmented and virtual reality hardware, later joined OpenAI.
Ternus now takes charge while Apple manages executive changes, competition for engineering talent and a major shift toward artificial intelligence. His USD 3 million salary and planned USD 55 million stock award place his compensation alongside the wider responsibility of leading Apple's next phase after Cook's long tenure.
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