Sabih Khan - Chief Operating Officer | Apple (AAPL) Executive Profile & Compensation

About Sabih Khan

Apple’s chief operating officer since July 25, 2025, Sabih Khan (age 58) is a 30-year Apple veteran who joined in August 1995, rose to the executive team as SVP of Operations in 2019, and succeeded Jeff Williams as COO as part of a planned succession . He oversees Apple’s global supply chain and American manufacturing initiatives, with leadership cited for pioneering advanced manufacturing, expanding Apple’s U.S. footprint, and advancing environmental sustainability efforts that “helped reduce Apple’s carbon footprint by more than 60 percent” per Apple’s announcement . Khan holds dual bachelor’s degrees in economics and mechanical engineering from Tufts University and a master’s in mechanical engineering from Rensselaer Polytechnic Institute . Context for incentive alignment: Apple reported FY2024 net sales of $391B (+2% YoY) and operating income of $123.2B (+8% YoY), with 2024 absolute TSR of 33.72% and 4-year TSR of 107.59% vs. peers at 98.69% .

Past Roles

Organization	Role	Years	Strategic impact
Apple	Chief Operating Officer	Jul 25, 2025–present	Oversees worldwide operations, supply chain, manufacturing, logistics, product fulfillment; leads American manufacturing partnerships and environmental initiatives
Apple	Senior Vice President, Operations	2019–Jul 2025	Central architect of Apple’s supply chain; expanded U.S. manufacturing; supported nimble responses to global challenges
Apple	Vice President, Product Operations (and prior operations roles)	1995–2019	Ensured product quality; planning, procurement, manufacturing, logistics; supplier responsibility programs
GE Plastics	Applications Development Engineer; Key Account Technical Leader	Pre-1995	Materials engineering and key account technical leadership before joining Apple

External Roles

Organization	Role	Years	Notes
—	—	—	No public-company board roles disclosed in reviewed Apple filings and press materials

Fixed Compensation

Reference point: Apple’s compensation framework for named executive officers (NEOs) in 2024, which applied to the COO predecessor (Jeff Williams). Apple uses a team-based structure; while 2025 Khan-specific pay is not yet disclosed in filings, the following summarizes program terms.

Component	2024 Structure for NEOs	Notes
Base Salary	$1,000,000	NEO base salaries unchanged in 2024
Target Cash Incentive	200% of base salary ($2,000,000)	Equal weighting: Net Sales and Operating Income
Long-Term Equity (Target Grant Value)	$20,000,000	50% performance-based RSUs; 50% time-based RSUs
Equity Grant Date	Oct 1, 2023 (for FY2024 awards)	Apple uses 2022 Employee Stock Plan

Performance Compensation

Metric	Weighting	Threshold	Target	Maximum	2024 Result	Vesting/Timing
Net Sales (GAAP)	50%	50% of target	100% of target	200% of target	Exceeded maximum; contributed to max payout	Annual cash award; paid per plan terms
Operating Income (GAAP)	50%	50% of target	100% of target	200% of target	Exceeded maximum; contributed to max payout	Annual cash award; paid per plan terms
Values Modifier	±10% to total payout	—	—	Overall cap 200%	Not applied in 2024 (already at max)	Applied after financial metrics

Equity incentives (program design and vesting mechanics):

Time-based RSUs (2024 grants to NEOs): 3 equal annual installments over ~4.5 years, first installment vests April 1, 2026 .
Performance-based RSUs (Relative TSR vs S&P 500): 0–200% payout; target at 55th percentile; example 2024 grant assumptions show performance period ending 9/26/2026 .

Illustrative recent award schedule (CFO FY2025 award terms for context):

36,767 PRSUs scheduled to vest on Oct 1, 2027, 0–200% based on Apple’s TSR vs S&P 500 from 9/29/2024 to 9/25/2027 .
36,767 time-based RSUs vest in equal installments on Apr 1, 2027, Apr 1, 2028, and Apr 1, 2029 .

Equity Ownership & Alignment

Policy/Term	Detail
Stock ownership guidelines	Executive officers must own Apple shares equal to 3x base salary within 5 years; CEO 10x .
Hedging/Pledging	Prohibited for directors, officers, employees (short sales, derivatives, hedging, pledging) .
Clawback/Recoupment	Discretionary recoupment for misconduct; mandatory recovery policy under Exchange Act 10D-1 for erroneously paid performance-based pay to Section 16 officers, covering 3 completed fiscal years prior to a restatement .
Dividend equivalents	Not paid unless vesting/performance conditions are met .
Pensions/Perqs	No pension or supplemental benefits; no tax gross-ups on perquisites for NEOs .
Beneficial ownership (Khan)	Not itemized in 2025 proxy (Khan was not a 2024 NEO or director); Apple’s beneficial ownership table covers directors/NEOs; pledging prohibited .

Vesting calendar and potential selling pressure indicators:

Typical NEO time-based RSU vest dates cluster around April 1 in consecutive years (e.g., April 1, 2026 for 2024 grants; April 1, 2027–2029 for the CFO’s 2025 award), which can create periodic liquidity events; performance RSU settlements align with performance period end-dates (e.g., Oct 1, 2027 in CFO example) .

Insider selling/ownership filings:

No Form 4 transactions retrieved for AAPL via document search during 2024–2025; Khan’s appointment 7/25/2025 makes him a Section 16 officer going forward; monitor future Form 4s for selling pressure once grants are disclosed .

Employment Terms

Term	Detail
Employment status	At-will employment; NEOs do not have employment contracts .
Change-of-control	Apple does not provide change-of-control payments or excise tax gross-ups .
Indemnification	Apple and Khan entered Apple’s standard indemnification agreement for executive officers .
Related party transactions	None for Khan requiring disclosure under Item 404(a); no family relationships requiring disclosure .
Say-on-Pay support	92% of votes cast supported NEO compensation at 2024 Annual Meeting .
Risk oversight	People & Compensation Committee conducts annual comp risk assessment; hedging/pledging bans, clawbacks, pay mix, and caps mitigate risk .

Performance & Track Record

Indicator	Detail
FY2024 Net Sales	$391B; +2% YoY ($7.7B)
FY2024 Operating Income	$123.2B; +8% YoY ($6.9B)
2024 Absolute TSR	33.72%
4-Year TSR (to 2024)	107.59% (Apple) vs. 98.69% peer group
Operations achievements	Apple cites Khan as central architect of supply chain; expansion of U.S. manufacturing; environmental sustainability (reduced carbon footprint by >60%) .
U.S. manufacturing initiatives	Public partner announcements and Apple release highlight expansion of end-to-end American silicon, rare earth magnets, and supplier agreements; Khan quoted as COO driving “American Manufacturing Program” .

Investment Implications

Strong pay-for-performance alignment: Executive cash incentives are tied 50/50 to Net Sales and Operating Income with strict caps and a small values modifier; long-term awards are primarily equity with Relative TSR PSUs, anchoring compensation to shareholder outcomes .
Low misalignment risk: Prohibitions on hedging/pledging, robust clawbacks, at-will employment, no change-of-control payments or tax gross-ups reduce governance and pay-structure risk; stock ownership guidelines enforce “skin-in-the-game” for executive officers .
Retention and selling pressure watchpoints: Apple’s standardized vesting cadence (e.g., April 1 installments for time-based RSUs; PSU settlements at performance period end) can produce predictable liquidity windows—monitor Form 4s following Khan’s elevation to Section 16 status for any emerging selling pressure once awards are disclosed .
Execution leverage: Khan’s elevation to COO after decades in operations coincides with Apple’s push into U.S. semiconductor and materials supply chains; continued delivery on these initiatives supports resilience and margin defense but also concentrates execution risk in supply chain scaling and partner delivery .