Apple Inc. (NASDAQ: AAPL) has disclosed a new compensation package for Tim Cook, who is transitioning to the role of executive chairman. The filing with the U.S. Securities and Exchange Commission details that Cook will receive a $2 million annual salary and a target equity award valued at $45 million for fiscal 2027. This brings his total target compensation to $47 million.
The new package represents a significant reduction from Cook's recent earnings. In Apple's fiscal years 2024 and 2025, he received approximately $74 million in compensation each year. Apple stated that Cook will continue to assist with certain company matters, including engagement with policymakers around the world. The company noted that his role as executive chairman is expected to be more substantial than that of a typical former CEO serving on a board.
Simultaneously, Apple disclosed the compensation package for new CEO John Ternus. Ternus will receive a $3 million annual salary and a target annual equity award worth $55 million, resulting in total target compensation of $58 million. Of Ternus' equity award, 75% is performance-based restricted stock units tied to Apple's shareholder returns relative to other S&P 500 companies, while the remaining 25% consists of time-based restricted stock units vesting over four years.
The leadership transition occurred on September 1, with Ternus, a 25-year Apple veteran and hardware engineer, taking over for Cook. Cook led the company for 15 years, overseeing its growth into a technology giant. Ternus' first major public appearance as CEO is scheduled for next Wednesday at Apple’s annual iPhone launch event in Cupertino.
