Tim Cook may have handed Apple Inc.’s (NASDAQ:AAPL) CEO reins to John Ternus, but his new $47 million compensation package signals the longtime chief executive is expected to remain deeply involved in the company as executive chairman.
Tim Cook’s $47 Million Apple Pay Package
On Tuesday, Apple disclosed the new compensation arrangements in a filing with the U.S. Securities and Exchange Commission as Ternus officially took over as CEO on Sept. 1.
Cook will receive a $2 million annual salary and a target equity award of $45 million for fiscal 2027, putting his total target compensation at $47 million.
The package represents a significant reduction from Cook’s recent compensation. He received about $74 million in each of Apple’s 2024 and 2025 fiscal years.
However, the size of the new package suggests Cook’s role as executive chairman will be more substantial than that of a typical former CEO serving on a board.
Apple has said Cook will continue assisting with certain company matters, including engagement with policymakers around the world. He is reportedly expected to maintain his relationships with President Donald Trump and the Chinese government in his new role.
John Ternus’ Compensation Reaches $58 Million
Ternus will receive a $3 million annual salary and a target annual equity award worth $55 million beginning in fiscal 2027, giving him target compensation of $58 million.
Of Ternus’ equity award, 75% will be performance-based restricted stock units tied to Apple’s shareholder returns relative to other S&P 500 companies.
The remaining 25% will consist of time-based RSUs vesting over four years.
Cook Remains a Key Apple Figure
The leadership transition marks only the second change in Apple’s CEO this century. Cook led the company for 15 years, overseeing its transformation into a roughly $4.5 trillion technology giant.
Meanwhile, Ternus, a 25-year Apple veteran and hardware engineer, began his tenure as CEO Tuesday by thanking Cook in a message to employees and expressing appreciation that his predecessor would remain as executive chairman.
His first major public appearance as CEO is set for next Wednesday at Apple’s annual iPhone launch event in Cupertino, where the company is expected to introduce a new foldable iPhone.
Price Action: Apple shares closed 2.61% higher at $325.13 on Tuesday. The stock was little changed in after-hours trading at $325.14, according to Benzinga Pro.
Benzinga Edge Stock Rankings place Apple in the 97th percentile for Quality, reflecting its strong performance across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Ringo Chiu on Shutterstock.com
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