Apple to pay Tim Cook $47 million as he takes over as executive chair: Here's how much he will make in annual salary

iPhone maker Apple Inc. is paying its former Chief Executive Officer (CEO), Tim Cook, 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.

How much will Tim Cook get in annual salary?

The Financial Times reported on Tuesday that Cook's $47 million compensation package includes a $2 million annual salary and $45 million in planned equity. In a US Securities and Exchange Commission (SEC) filing, the company said that the current CEO's base salary has now been raised to $3 million, with a target annual equity award of $55 million in the financial year 2027, subject to performance criteria.

Cook, who had been at the helm of Apple for 15 years, is reportedly taking a 40% pay cut. His compensation package for the 2024 and 2025 fiscal years totalled around $74 million. The handover to John Ternus marked the second CEO transition at Apple this century.

Apple has created the executive chair position specifically for Cook, while longtime non-executive board chair Arthur Levinson will assume the role of 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.

Tim 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 United States and China and helped the company manage its position as a major US technology group with heavy manufacturing exposure to Beijing.

John Ternus takes over as CEO, replacing Tim Cook

Ternus, a 25-year Apple 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 took charge of a company that remains dominant in the global smartphone market but has fallen behind competitors in the artificial intelligence space. However, one of Ternus' biggest challenges will be balancing the iPhone 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.

(With agency inputs)