Apple has crafted a compensation package for Tim Cook that closely mirrors the pay structure of his successor, John Ternus, signaling that the outgoing CEO will retain substantial influence in his newly created position as Executive Chairman.

According to a regulatory filing, Apple (NASDAQ: AAPL) disclosed that Cook officially assumed his new duties on Tuesday, with a compensation package valued at $47 million, combining salary and stock awards. The company also confirmed that Ternus' base salary has been increased to $3 million, and if he meets performance targets, he could receive an additional $55 million in target annual equity awards during the 2027 fiscal year.

Cook's annual base salary is set at $2 million, with planned equity awards of $45 million. Compared to the previous year, his combined salary and stock incentives have been reduced by 20%. Notably, the filing released on Tuesday does not include bonus figures or other compensation details, which are expected to be disclosed at a later date.

Tuesday's power transition from Cook to Ternus marks only the second CEO change at Apple this century. The role of "Executive Chairman" was created specifically for Cook. Long-serving non-executive Chairman Arthur Levinson, who transitioned to Lead Independent Director on Tuesday, received a total compensation of just $557,231 for the 2025 fiscal year.

Apple has previously stated that Cook will assist with corporate affairs, including engagement with policymakers across various countries. Wall Street analysts interpreted the announcement as indicating that Cook's role will be more akin to an active executive rather than a conventional, hands-off board member. The substantial compensation package further underscores the weight and significance of his new position.

Ternus, a hardware engineer with 25 years of experience at Apple, sent an internal memo to all employees on his first day Tuesday, thanking Cook and expressing his appreciation that Cook will remain as Executive Chairman. In the memo, Ternus wrote: "It is a privilege to lead this truly deserving, greatest company in the world. I am very excited about the plans we have in store."

His first major public appearance as CEO will be at the annual iPhone launch event in Cupertino next Wednesday, where Apple is expected to debut its new foldable smartphone. In the memo to employees, Ternus teased next week's event as "grand" and "amazing," adding that he looks forward to "the incredible products in development, and the ones that are still just a spark of an idea."

This compensation structure places Cook near the high end of executive chairman pay among major U.S. corporations. For comparison, when Morgan Stanley's James Gorman transferred power, he received $27 million in 2024 while his successor Ted Pick earned $34 million. Similarly, former Mastercard CEO Ajay Banga saw his compensation cut by 37% to $17 million when he stepped down in late 2020.