Business & Finance
Tim Cook transitions to Apple executive chair with $47 million target pay package
Regulatory filings show incoming CEO John Ternus is set to receive $58 million in target compensation as Cook steps down after 15 years.
The short version
- Tim Cook stepped down as Apple CEO after 15 years, transitioning into the role of executive chair.
- Cook's new compensation package targets $47 million annually, consisting of a $2 million base salary and $45 million in equity awards.
- New CEO John Ternus will receive a $3 million salary alongside $55 million in target stock awards for his first year.
- Potential cash bonuses for both executives were not detailed in the filing.
Key facts
- Tim Cook stepped down as Apple's chief executive officer after 15 years to become executive chair, handing leadership to John Ternus.[Business Insider]
- Apple disclosed in a regulatory filing that Cook's compensation package includes a $2 million salary and a target annual equity award of $45 million for fiscal 2027.[Business Insider]
- Cook's equity grant is evenly split between time-based restricted stock units vesting over four years and performance-based units tied to Apple's total shareholder return against the S&P 500.[Business Insider]
- John Ternus is slated to earn a $3 million annual salary and restricted stock units with a target value of $55 million in his initial year as CEO.[Business Insider]
- Over Cook's 15-year tenure as CEO, Apple's split-adjusted stock price rose nearly 2,300%, moving from around $13 to $317 on his final day in the role.[Business Insider]
What remains uncertain
- Apple did not disclose the potential cash bonus amounts that Cook and Ternus may be eligible to receive.[Business Insider]
Sources
- Tim Cook scores $47 million pay deal to stay on as Apple's chairmanBusiness Insider metered