Tim Cook's New Role: Executive Chair at Apple

Tim Cook's departure from Apple as CEO marks the end of an era, but he will remain at the company in a new role. As executive chair, Cook will receive a compensation package worth up to $47 million for fiscal 2027, down from his previous base salary of $3 million. The structure of his award suggests that Apple sees him as an important part of its future, with half the restricted stock units tied to the company's performance relative to the S&P 500 and the other half vesting over four years.

Cook's move to executive chair indicates a shift in responsibilities, allowing John Ternus, his successor, to take on the challenges of running Apple. Ternus will earn an annual salary of $3 million and receive restricted stock with a target value of $55 million in his first year as CEO.

The compensation packages for Cook and Ternus reflect their different roles at the company. While Cook's award is more weighted towards time-based vesting, Ternus's package is heavily performance-driven, with 75% of the restricted stock units tied to Apple's relative performance. This structure suggests that Apple expects Ternus to drive growth and innovation in his new role.