Apple has named Tim Cook as its new executive chair, awarding him a pay package approaching $47 million as he steps down from his 15-year tenure as chief executive. Cook's compensation includes a $2 million base salary and $45 million in equity awards, with half of the shares contingent on performance targets and the remainder vested over four years. His successor, John Ternus, who officially assumed the CEO role on Tuesday, will receive a base salary of $3 million and an equity award valued at approximately $52 million to $55 million, largely tied to performance criteria.
Cook, who took over from Steve Jobs in 2011, guided Apple through a period of extraordinary growth, with the company's market capitalization rising from around $350 billion to approximately $4.7 trillion. During his leadership, Apple expanded its global footprint and navigated complex relationships, particularly balancing its standing as a major American corporation with its extensive manufacturing operations in China. About 80 percent of Apple products continue to be assembled in China, despite efforts to diversify the supply chain to India and Vietnam.
The newly created role of executive chair for Cook signals his ongoing involvement with the company, focusing on select corporate matters including global policy engagement. Apple disclosed that he would assist with relationships involving policymakers worldwide. Industry analysts interpret Cook’s substantial remuneration in this new capacity as an indication that he will maintain a significant executive presence rather than serving solely in a detached board role.
Ternus, a 25-year Apple veteran and hardware engineer named senior vice president of hardware engineering before becoming CEO, will oversee Apple's product development and innovation going forward. He led teams behind key product lines such as the iPhone, Apple Watch, and AirPods. In his first communication to employees, Ternus expressed excitement about upcoming releases and innovations, including Apple’s anticipated unveiling of a foldable iPhone at the company’s annual event scheduled for September 9 in Cupertino. This launch is expected to mark a major step in Apple’s product evolution and incorporate advances in artificial intelligence.
Cook praised Ternus in a memo, highlighting his deep understanding of product development and expressing confidence in his leadership. The leadership transition marks only the second CEO change at Apple this century, underscoring the company’s stable executive continuity. Meanwhile, longtime non-executive board chairman Arthur Levinson assumed the role of lead independent director, with his compensation reported at just over $550,000 for the 2025 fiscal year.
Market observers note that Ternus’s background in engineering contrasts with Cook’s operational focus and that his tenure may bring increased emphasis on product innovation to reduce Apple’s revenue dependence on the iPhone, the company’s flagship product. As Cook transitions to his new role, attention will center on how Apple balances ongoing global challenges and technological advancement under Ternus’s leadership.