Apple announced that Tim Cook, who served as CEO for 15 years, has received a $47 million compensation package for his new position as executive chairman of the company's board of directors. The remuneration, detailed in a recent regulatory filing, includes a $2 million annual base salary and $45 million in equity awards for fiscal year 2027. Half of the equity award is performance-based, while the remaining half will vest over four years. This compensation package closely aligns with the $58 million target package set for John Ternus, who officially succeeded Cook as CEO on September 1, 2026.
The transition of leadership, which Apple publicly announced on April 20, 2026, involved a planned succession process approved unanimously by the board of directors. Cook, who led Apple through a period of substantial growth, will continue to assist the company with certain matters, including engagement with global policymakers. This executive chairman role is described as more substantial than a typical former CEO serving on a board, indicating Apple's intent for Cook to remain deeply involved in the company's strategic direction.
John Ternus, formerly Apple's senior vice president of Hardware Engineering, officially took the helm as CEO on September 1, 2026. His compensation package includes a $3 million annual base salary and a target annual equity award of $55 million for fiscal 2027. Of Ternus's equity award, 75% is performance-based, linked to Apple's total shareholder return compared to other S&P 500 companies. The remaining 25% is time-based, vesting semiannually over four years. Ternus also received a prorated restricted stock unit award with a target value of $2.5 million for the portion of fiscal 2026 he served as CEO.
Cook's compensation as executive chairman represents a reduction from his previous earnings as CEO. In fiscal years 2024 and 2025, Cook's total compensation as CEO exceeded $74 million annually. His salary and stock awards alone totaled approximately $60.5 million in 2025. Despite the reduction, the size of the new package for an executive chairman role is notable.
During Cook's 15-year tenure as CEO, Apple's market capitalization grew significantly, from approximately $350 billion to about $4.67 trillion. He oversaw the introduction of new product categories such as the Apple Watch, AirPods, and Vision Pro. Ternus, who joined Apple in 2001, has overseen hardware engineering for key products including the iPhone, iPad, and Mac. His appointment as CEO signals a potential shift towards a more product and engineering-led approach, building on his extensive experience in hardware development.
As part of the leadership changes, Arthur Levinson, who served as Apple's non-executive chairman for 15 years, has transitioned to the role of lead independent director. Ternus has also joined Apple's board of directors. The company's updated leadership page reflects these changes, with Ternus now listed as CEO and Cook as executive chair in the board of directors section.