Apple has named John Ternus as its new chief executive, succeeding Tim Cook, who becomes executive chairman—a newly created role. The transition, effective Tuesday, was disclosed in a regulatory filing that also detailed compensation for both executives.

According to Apple’s filing with the S. Securities and Exchange Commission (SEC) on Sept. 1, Ternus will earn a $3 million annual salary, effective immediately. His target compensation for the current fiscal year is about $58 million (roughly Rs 551 crore), which includes stock awards targeted at $55 million. Cook’s package as executive chairman is $47 million (about Rs 446 crore), comprising a $2 million salary and $45 million in planned equity.

The filing marks only the second change in CEO at Apple this century. Cook, who had led the company since 2011, takes on the executive chair role he was created for, while longtime non-executive board chair Arthur Levinson will become lead independent director. Cook’s salary drops from $3 million to $2 million as executive chairman, and his fiscal 2027 stock package carries a target value of $45 million.

Ternus, a 25-year Apple veteran who previously served as senior vice president of hardware engineering, also receives a prorated restricted stock unit award worth $2.5 million for fiscal 2026. The bulk of his equity award is performance-based: 75% will vest based on Apple’s total shareholder return relative to other S&P 500 companies, while the remaining 25% consists of time-based units vesting over four years. In contrast, half of Cook’s fiscal 2027 equity award is performance-based, with the other half time-based.

In a message to employees on Sept. 1, Ternus thanked Cook and the staff, writing, “We’re so lucky to have had a CEO who led with his values and with such decency and humanity.” He also hinted at an upcoming product launch: “We have a huge launch next week that’s going to be phenomenal.”

Ternus, 51, joined Apple’s design team in 2001 and rose to lead engineering for the company’s entire product portfolio, including the iPhone, which accounts for the largest share of revenue. His appointment comes just days before Apple’s annual iPhone event on Sept. 9, where the company is expected to unveil its first foldable iPhone.

Cook’s role as executive chairman includes engagement with policymakers globally. The former CEO’s total pay in fiscal 2025 was $74.3 million, including a $3 million salary, $12 million in performance-based cash awards, and $57.5 million in stock awards. During his 15-year tenure, Apple’s valuation grew from about $350 billion to over $4.5 trillion.

Analysts note that Ternus will face the challenge of balancing Apple’s reliance on Beijing while dealing with political pressure from the White House. Under his leadership, Apple is expected to emphasize innovative product development and integrate artificial intelligence into its devices.

The filing, submitted to the SEC, marked the first day of Ternus’s tenure. It did not set out any new cash bonus figures for either executive. Apple has not disclosed what Ternus earned in his previous role, though executives at that level typically receive around $25 million annually, according to a Bloomberg report mentioned in one source.