Apple has awarded Tim Cook a $47mn pay package as he moves from chief executive to executive chair, a deal that brings his compensation close to that of his successor and signals that he will continue to play a significant role at the technology giant.
Cook assumed his new position on Tuesday as John Ternus became Apple’s chief executive. His new package represents a roughly 40 per cent reduction from the approximately $74mn he received in each of the 2024 and 2025 fiscal years. Apple said Cook’s annual salary will be $2mn, accompanied by $45mn in planned equity.
Ternus, meanwhile, will receive a base salary of $3mn and a target annual equity award of $55mn for the company’s 2027 fiscal year, subject to performance criteria. His total potential package therefore reaches $58mn, putting the compensation of the new chief executive only modestly above that of his predecessor.
The handover marks only the second change in Apple’s chief executive position this century. Cook spent 15 years at the helm, during which he developed close relationships with Washington and Beijing and became one of the world’s most recognisable corporate figures.
His tenure also saw Apple navigate the complicated position of being one of America’s largest companies while remaining heavily dependent on manufacturing in China. That experience has given Cook a prominent role in dealing with policymakers and international economic relationships.
Apple created the executive-chair position specifically for Cook. Arthur Levinson, who had served as the company’s non-executive board chair, became lead independent director on Tuesday. Levinson received $557,231 for the 2025 fiscal year.
Apple has previously said Cook would “assist with certain aspects of the company, including engaging with policymakers around the world”. The size of his new compensation package has reinforced the view among Wall Street analysts that his role will be considerably more active than that of a conventional arm’s-length board member.
Ternus, a 25-year Apple veteran and hardware engineer, began his first day as chief executive by thanking Cook and expressing his appreciation that his predecessor would remain with the company as executive chair.
“I’m honoured to be stepping into this role at what is truly the greatest company in the world, and I am so excited about everything we have in store,” Ternus said in a message to employees.
His first major public appearance as chief executive will come next Wednesday at Apple’s annual iPhone launch event in Cupertino. The company is expected to unveil a new foldable smartphone at the event.
In his message to staff, Ternus described the forthcoming launch as “huge” and “phenomenal”, while saying he was excited about “the incredible products already in the works and the ones we haven’t even imagined yet”.
Cook’s package places his compensation at the upper end of executive-chair pay among major US companies. Morgan Stanley’s James Gorman received $27mn in 2024 after handing the chief executive role to Ted Pick, who received $34mn. Mastercard chief executive Ajay Banga took a similar 37 per cent pay cut to $17mn when he stepped down at the end of 2020.
Apple’s shares closed about 2.5 per cent higher on Tuesday, as the leadership transition formally began and Cook moved into a newly created role that will keep him closely connected to the company he led for 15 years.
