Tim Cook Is Still Being Paid Like a Boss
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Last week, John Ternus officially moved from his role as senior vice president of hardware engineering to Apple’s CEO. At the same time, former CEO Tim Cook, began a new role as executive chair of the board of directors.
The “Ternus era” kicks off with some major supply chain decisions to be made in the face of skyrocketing RAM prices and trying to satisfy both Beijing and the current US administration.
The past week included all of the usual signs of a leadership transition: a farewell memo from Cook, an introductory note from Ternus to employees, and a new office. However, a number in Apple’s recent corporate filings may undercut the leadership story Apple is trying to tell, leaving some wondering who’s really still calling the shots.
In a September 2026 SEC filing, Apple has revealed the pay packages for both Cook and Ternus. Cook will receive a base salary of $2 million. That’s down from the $3 million base CEO pay Ternus will now receive, but that’s also not the whole story.
For 2027, Cook is also being given an equity award with a target value of $45 million. Half of this equity is time-based restricted stock units (RSUs) vesting over four years, while the other half is tied to Apple’s stock performance relative to the S&P 500. So, Cook’s total target compensation for his first year as Apple’s executive chair will be $47 million.
Ternus, on the other hand, will receive a $3 million base salary with an equity award targeting $55 million for a total of $58 million total compensation. However, unlike Cook’s equity award, only 25% ($13.75 million) of Ternus’ equity is time-based RSUs that will vest automatically. The other 75% ($41.25 million) depends on how Apple’s shareholder return stacks up against the S&P 500.
As Bloomberg‘s Mark Gurman points out, “…there is even an unlikely scenario in which Cook could ultimately realize more value from his 2027 package than Ternus does from his.”
Gurman’s take is fairly blunt: this doesn’t feel like the pay package of a guy who’s fading into the background.
For comparison, Apple’s former chairman, Arthur Levinson, who remains on the board as lead independent director, was paid less than $560,000 by Apple last year, including salary and stock. Of course, he wasn’t an executive chairman.
Cook will continue to make more money than most CEOs at major public companies — and nearly twice as much as other top Apple executives, including the chief financial officer and chief operating officer, have historically earned.
Mark Gurman
In short, Cook will be pulling in over 80% of what Ternus makes, possibly more, in a role that traditionally exists to advise the board and mentor a successor.
Is Apple hedging on Ternus or keeping him on a short leash? That may be a fair viewpoint, but it’s unlikely. Apple is heading into its biggest product event of the year where Ternus will debut its first foldable iPhone on top of managing chip shortages and skyrocketing costs that impact that company’s ability to deliver products to consumers at all, let alone at manageable prices.
A more logical interpretation is that September 9 is too high-stakes of a moment coupled with supply chain uncertainty to risk the slightest appearance of a leadership vacuum. Although Ternus holds the CEO title, Cook will likely be in the room and his presence will likely garner as much attention as the new products themselves.
It’s also important to remember that Apple has never had an “executive chairman” before. This is an entirely new position, with unique responsibilities. While it’s not yet entirely clear what Cook will do in this role, the leadership transition announcement in April said he’d continue to “assist with certain aspects of the company, including engaging with policymakers around the world,” which many have taken to mean he’ll remain the geopolitical face of Apple.
