Tim Cook scores $47 million pay deal to stay on as Apple's chairman

Tim Cook is nary longer Apple's CEO, but he'll proceed to cod a CEO-sized paycheck.

This week, Cook handed Apple's reins to John Ternus aft 15 years successful charge, and took connected the domiciled of executive chair.

Cook's caller occupation pays a $2 cardinal net alternatively of $3 million, and comes pinch an yearly equity grant pinch a target worth of $45 cardinal for fiscal 2027, Apple said successful a regulatory filing connected Tuesday.

Half of that grant comprises performance-based restricted banal units (RSUs) that will vest based connected Apple's full shareholder return comparative to different S&P 500 companies. The different half is time-based and will vest complete a four-year period.

As CEO, Cook earned astir $74 million — including $14 cardinal successful rate bonuses and different compensation — successful each of 2024 and 2025

Apple disclosed that Ternus will receive a $3 cardinal yearly net and restricted banal pinch a target worth of $55 cardinal for his first twelvemonth arsenic CEO. A afloat 75% of the RSUs will beryllium tied to Apple's comparative performance, while 25% will vest complete 4 years.

The iPhone shaper didn't opportunity really overmuch Ternus and Cook guidelines to gain successful rate bonuses.

The Buffett approach

The size of Cook's salary package signals he'll proceed to play a cardinal domiciled astatine Apple.

Warren Buffett has taken a akin attack astatine Berkshire Hathaway, retiring arsenic CEO astatine the move of this twelvemonth but staying connected arsenic chairman, serving arsenic a adjacent advisor to caller CEO Greg Abel, and even picking stocks for Berkshire's portfolio.

Cook's compensation arsenic president tin besides beryllium seen arsenic a reflection of the value he created for Apple. As CEO, he scaled Apple's manufacturing and distribution, strengthened its world proviso chain, and successfully catered to China's burgeoning mediate class.

Apple's split-adjusted banal value rocketed by astir 2,300% during his tenure, from astir $13 to $317 astatine the adjacent of Cook's past time arsenic CEO connected Monday. It closed almost 3% higher astatine $325 connected Tuesday.

That capacity has fueled immense gains for shareholders. Buffett said during Berkshire's shareholder meeting successful May that, nether Cook, his $35 cardinal finance successful Apple grew to $185 cardinal successful worth earlier taxes, including dividends.

"Tim Cook has made Berkshire a batch much than I person made Berkshire," Buffett told his shareholders past year.

Cook has besides cultivated strong relationships pinch President Donald Trump and the Chinese government, which helped Apple navigate geopolitical turmoil successful caller years. Ternus mightiness telephone connected him to activity those connections successful the future.

As Ternus grapples pinch challenges specified arsenic nailing down Apple's AI strategy and halting its talent exodus, Apple's elder activity whitethorn person decided that keeping Cook connected the payroll is worthy the price.