Tim Cook to Receive $47 Million as Executive Chairman. Apple has outlined new compensation packages for its leadership team, setting a target pay package of about $58 million for new Chief Executive Officer John Ternus in fiscal 2027.
Former CEO Tim Cook, who has moved into the role of executive chairman, is set to receive a target compensation package worth about $47 million. The figures were disclosed as Apple begins a major leadership transition, with Ternus taking over the company’s top executive role.
Ternus to Receive $3 Million Salary
Ternus’s compensation package includes an annual base salary of $3 million and a stock award with a target value of $55 million for fiscal 2027.
Most of his compensation will therefore be linked to Apple’s stock performance and long-term shareholder returns rather than cash salary alone. A significant portion of the equity award is tied to Apple’s performance compared with companies in the S&P 500.
The new pay structure gives Ternus a strong financial incentive to maintain Apple’s performance as he takes responsibility for one of the world’s most valuable technology companies.
Tim Cook’s Pay Falls in New Role
Cook will receive an annual salary of $2 million as executive chairman, along with a targeted equity award worth approximately $45 million.
His total target compensation for fiscal 2027 is therefore set at about $47 million, lower than Ternus’s package as Apple shifts its former chief executive into a new leadership role.
Despite stepping down as CEO, Cook is expected to remain closely involved with Apple through his executive chairman position.
Stock Awards Make Up Most of Compensation
The compensation arrangements for both executives are heavily weighted toward stock awards.
For Ternus, a large share of the equity package will depend on Apple’s performance relative to other major companies in the S&P 500, while additional shares are expected to vest over several years.
The structure is designed to align executive compensation with shareholder returns and encourage long-term performance rather than short-term results.
Major Leadership Transition for Apple
Ternus’s appointment marks a significant transition for Apple following Cook’s long tenure as CEO.
The new chief executive previously led Apple’s hardware engineering operations and has played a key role in the development of many of the company’s major products.
Cook, meanwhile, is moving into the executive chairman role after leading Apple through a period of major growth and expansion. The new compensation arrangements underline the company’s effort to ensure continuity while handing day-to-day leadership to a new generation of executives.
Investors Watch Apple’s Next Chapter
The leadership transition comes at an important time for Apple as the technology industry faces increasing competition in artificial intelligence, hardware and consumer electronics.
Investors will be closely watching Ternus as he takes charge of the company and attempts to build on Apple’s position in the global technology market.
For now, Apple’s new compensation plans signal the beginning of a new era, with Ternus receiving a stock-heavy $58 million target package as CEO while Cook remains involved in the company’s leadership as executive chairman with a $47 million compensation package.
