Tim Cook has stepped down as Apple CEO after 15 years, transitioning to executive chair with a $47m (£35m) pay package. Longtime hardware engineering leader John Ternus succeeds him as chief executive, taking the reins of a multi-trillion-dollar company as Apple ramps up its artificial intelligence strategy and hardware integration.
Executive Transition and the New Pay Structure at Apple
Tim Cook is no longer Apple’s chief executive, but his new role as executive chair of Apple comes with a CEO-sized remuneration package. Cook handed the reins to John Ternus on Tuesday, completing a leadership shift for the world’s most valuable tech enterprise after 15 years in charge.
According to a regulatory filing released on Tuesday, Cook will collect a base salary of $2 million alongside an annual equity award with a target value of $45 million for fiscal 2027. Half of that share award comprises performance-based restricted stock units tied to Apple’s total shareholder return relative to S&P 500 companies, while the remaining half is time-based and vests over four years.
The scale of Cook’s compensation contrasts with his final years as CEO, where his total compensation package exceeded $74 million in each of 2024 and 2025, a figure that included $14 million in cash bonuses and other compensation. His successor steps into the top job on different terms.
| Executive | New Role | Base Salary | Target Equity Award |
|---|---|---|---|
| Tim Cook | Executive Chair | $2 million | $45 million |
| John Ternus | Chief Executive Officer | $3 million | $55 million |
Ternus receives a $3 million annual salary and restricted stock with a target value of $55 million for his first year as CEO. A full 75% of Ternus’s restricted stock units are tied to relative performance metrics, while 25% vest over a four-year period. Apple did not disclose projected cash bonuses for either executive in its filings.
Engineering Heritage and the Warren Buffett Parallel
Ternus, a 51-year-old engineer and longstanding company employee, previously served as senior vice-president of hardware engineering. In that capacity, he directed the teams behind Apple’s entire product lineup, including the iPhones that generate the vast majority of corporate revenue.
The decision to retain Cook as executive chairman mirrors a corporate governance approach championed by Warren Buffett at Berkshire Hathaway. Buffett retired as CEO at the turn of the year while staying on as chairman to advise new CEO Greg Abel. Buffett has frequently praised Cook’s economic stewardship, noting that under Cook’s management, Berkshire’s investment in Apple expanded from $35 billion to $185 billion in value before taxes and dividends.
Supply Chain Expansion and the 2,200% Stock Rise
Cook took over the company from the late Steve Jobs in 2011 with a background in operations. Over the subsequent decade and a half, he built a sophisticated global manufacturing and distribution network while expanding Apple’s footprint in China. During his tenure, the stock has risen 2,200%, with Apple now valued at about $4.7tn. At the close of Cook’s final day as CEO on Monday, the split-adjusted stock price stood at about $317, before closing nearly 3% higher at $325 on Tuesday.
Beyond manufacturing, Cook cultivated deep relationships with policymakers around the world, maintaining ties with Donald Trump and the Chinese government to help navigate geopolitical turbulence.
Artificial Intelligence Integration and Upcoming Product Launches
Ternus assumes executive leadership at a pivotal juncture for the hardware giant. Analysts anticipate not only a slate of new devices but also accelerated progress on integrating artificial intelligence into Apple hardware. Ternus faces immediate operational tests, including solidifying Apple’s AI strategy and addressing a talent exodus within engineering ranks.
The new CEO’s first major public appearance in his new role arrives on September 9 at Apple’s annual iPhone event, where industry watchers expect the company to reveal a foldable handset.
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