iPhone maker Apple Inc. is paying its former Chief Executive Officer (CEO), , a $47 million compensation package as he transitions to the newly created role of executive chairman. The latest arrangement puts Cook’s pay close to that of new CEO John Ternus and suggests that the former CEO is likely to remain deeply involved in the company.
How much will Tim Cook get in annual salary?
The Financial Times reported the development on Tuesday (local time), stating that Cook’s compensation package of $47 million includes a $2 million annual salary and $45 million in planned equity. In a US Securities and Exchange Commission (SEC) filing, the company noted that the current CEO’s base salary has now been raised to $3 million, with a target annual equity award of $55 million in financial year 2027, provided the performance criteria are met.
Cook, who had been at the helm of the company for 15 years, is reportedly taking a 40 per cent cut in his pay. His previous compensation package during the 2024 and 2025 fiscal years was around $74 million. The handover to Ternus on Tuesday marked only the second change in CEO at the company this century.
The company has created the executive chair position specifically for Cook, while longtime non-executive board chair Arthur Levinson will take over as lead independent director from Tuesday. Levinson received $557,231 in compensation for the 2025 fiscal year, considerably less than Cook’s remuneration in his new role.
Cook’s role as executive chairman
Previously, the tech giant said the former CEO would assist with several aspects of the company, including engagement with policymakers around the world. His responsibilities, combined with the scale of his new compensation package, have led Wall Street analysts to believe that he is likely to remain actively involved in Apple rather than serve as a largely hands-off board chair.
During his 15 years as CEO, Cook built close ties with both the and and helped the company manage its position as a major US technology group with heavy manufacturing exposure to Beijing.
Ternus takes over as CEO, replacing Cook
, a 25-year veteran and hardware engineer, told employees that he is honoured to step into the role and is grateful that Cook is the executive chair.
On Tuesday, Ternus assumed the role of CEO, taking charge of a company that remains dominant in the global smartphone market but has fallen behind competitors in artificial intelligence. However, one of Ternus’ biggest challenges will be balancing the maker’s dependence on Beijing while dealing with acute political pressure from the White House.
Ternus, 51, joined the company’s design team in 2001 and worked his way up to senior vice president of hardware engineering, reporting to Cook, AFP reported. He oversees the engineering teams responsible for Apple’s entire product portfolio, including the iPhone, which accounts for the largest share of the company’s revenue.
Ternus’s appointment comes just days before Apple’s annual iPhone event on 9 September, giving him little time to settle into his new role. The company is expected to unveil its first foldable iPhone at the event.