Tim Cook steps down as Apple CEO but keeps CEO-level pay

Tim Cook has left the CEO role at Apple but will receive about $47 million as executive chairman, putting his compensation not far behind that of his successor, Bloomberg reports.

John Ternus officially took over as Apple CEO on September 1, 2026, ending Cook’s 15-year run in the job. Apple disclosed compensation details for both executives in an SEC filing released the same day.

According to Bloomberg’s Mark Gurman, Cook’s package surprised even some senior Apple executives. The size of the award is unusual for a former CEO who has formally stepped away from day-to-day management.

What Cook and Ternus will make

Ternus is set to receive target compensation of about $58 million for fiscal 2027, including a $3 million base salary and equity awards with a target value of $55 million. He was also granted roughly $2.5 million in stock for the portion of fiscal 2026 he will spend as CEO.

Cook’s target compensation as executive chairman will be about $47 million. His salary drops from $3 million to $2 million, while his equity package carries a target value of $45 million. By comparison, Cook received total compensation of $74.3 million in 2025 as CEO. His new $2 million salary is still twice the typical base pay for Apple senior vice presidents.

The structure of the two packages is also different. Seventy-five percent of Ternus’s equity award is tied to Apple’s stock performance relative to companies in the S&P 500, while only half of Cook’s package is performance-based. The other half vests evenly over four years. Gurman notes that, under an unlikely scenario, Cook could ultimately earn more from his 2027 package than Ternus.

Why Cook’s package stands out

Gurman says the compensation is unusually high for a board chairman. Arthur Levinson, Apple’s non-executive chairman before Cook, received less than $560,000 last year in salary, stock and other compensation.

The closest comparison, Gurman argues, is former Disney CEO Bob Iger. In his first year after stepping down as CEO, Iger received $46 million as executive chairman, which was $13.4 million more than his successor earned that year.

What the pay package says about Cook’s role

Gurman sees the compensation as a sign that Cook will remain closely involved in Apple’s most sensitive issues. He is expected to retain a key role in the company’s relationships with the White House and Beijing, as well as in efforts to navigate the ongoing memory shortage.

Cook will also move to a new office on the Apple campus, while his former space in Apple Park’s executive wing goes to Ternus.

Cook has told employees that he expects to remain chairman for a long time and that Apple will continue to be his “top priority,” while stressing that “there can only be one CEO at a time.” Ternus, meanwhile, is expected to push for faster product development and gradually reshape the company around his own priorities, though Gurman says that transition may take time.

The leadership change comes just days before Apple’s September 9 event, where the company is expected to unveil its foldable iPhone, the iPhone 18 Pro and Pro Max, and new Apple Watch models.