Tim Cook is no longer Apple’s CEO, but he’ll continue to collect a CEO-sized paycheck.
This week, Cook handed Apple’s reins to John Ternus after 15 years in charge, and took on the role of executive chair.
Cook’s new job pays a $2 million salary instead of $3 million, and comes with an annual equity award with a target value of $45 million for fiscal 2027, Apple said in a regulatory filing on Tuesday.
Half of that award comprises performance-based restricted stock units (RSUs) that will vest based on Apple’s total shareholder return relative to other S&P 500 companies. The other half is time-based and will vest over a four-year period.
As CEO, Cook earned around $74 million — including $14 million in cash bonuses and other compensation — in each of 2024 and 2025
Apple disclosed that Ternus will receive 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 the RSUs will be tied to Apple’s relative performance, while 25% will vest over four years.
The iPhone maker didn’t say how much Ternus and Cook stand to earn in cash bonuses.
The Buffett approach
The size of Cook’s pay package signals he’ll continue to play a central role at Apple.
Warren Buffett has taken a similar approach at Berkshire Hathaway, retiring as CEO at the turn of this year but staying on as chairman, serving as a close advisor to new CEO Greg Abel, and even picking stocks for Berkshire’s portfolio.
Cook’s compensation as chairman can also be seen as a reflection of the value he created for Apple. As CEO, he scaled Apple’s manufacturing and distribution, strengthened its global supply chain, and successfully catered to China’s burgeoning middle class.
Apple’s split-adjusted stock price rocketed by nearly 2,300% during his tenure, from about $13 to $317 at the close of Cook’s last day as CEO on Monday. It closed almost 3% higher at $325 on Tuesday.
That performance has fueled huge gains for shareholders. Buffett said during Berkshire’s shareholder meeting in May that, under Cook, his $35 billion investment in Apple grew to $185 billion in value before taxes, including dividends.
“Tim Cook has made Berkshire a lot more than I have made Berkshire,” Buffett told his shareholders last year.
Cook has also cultivated strong relationships with President Donald Trump and the Chinese government, which helped Apple navigate geopolitical turmoil in recent years. Ternus might call on him to work those connections in the future.
As Ternus grapples with challenges such as nailing down Apple’s AI strategy and halting its talent exodus, Apple’s senior leadership may have decided that keeping Cook on the payroll is worth the price.
