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

Tim Cook is Apple's executive chair and former CEO.

Kevin Dietsch/Getty Images Tim Cook is poised to earn about $47 million in annual salary and stock awards as Apple's chairman.

Cook stepped down as Apple's CEO this week after 15 years in the top job.

John Ternus stands to earn $58 million in salary and stock awards in his first year as CEO.

Tim Cook is no longer Apple's CEO, but he'll continue to collect a CEO-sized paycheck.

This week, Cook handed Apple's reins to John Ternus after 15 years in charge, and took on the role of executive chair.

Cook's new job pays a $2 million salary instead of $3 million, and comes with an annual equity award with a target value of $45 million for fiscal 2027, Apple said in a regulatory filing on Tuesday.

Half of that award comprises performance-based restricted stock units (RSUs) that will vest based on Apple's total shareholder return relative to other S&P 500 companies.

The other half is time-based and will vest over a four-year period.

As CEO, Cook earned around $74 million — including $14 million in cash bonuses and other compensation — in each of 2024 and 2025 Apple disclosed that Ternus will receive a $3 million annual salary and restricted stock with a target value of $55 million for his first year as CEO.

A full 75% of the RSUs will be tied to Apple's relative performance, while 25% will vest over four years.

The iPhone maker didn't say how much Ternus and Cook stand to earn in cash bonuses.

The Buffett approach The size of Cook's pay package signals he'll continue to play a central role at Apple.

Warren Buffett has taken a similar approach at Berkshire Hathaway, retiring as CEO at the turn of this year but staying on as chairman, serving as a close advisor to new CEO Greg Abel, and even picking stocks for Berkshire's portfolio.