Abstract:
On September 7, Bloomberg’s well-known Apple reporter Mark Gurman (Mark Gurman) wrote on Sunday,
Early signs from Apple headquarters indicate that Tim Cook will still exert an important influence at Apple after stepping down as CEO, and his latest salary package further confirms this
.
Cook and Turnus
Apple orchestrated Cook’s CEO transition to John Ternus. The company has found an ingenious way to put the spotlight on its new CEO this week with a new product launch, while also paying homage to Cook's record-breaking 15-year tenure.
Cook chose to step down at this moment, and left Ternus with a large number of dazzling new products from the beginning. This transition is almost guaranteed to be written into business school textbooks, which is exactly what Cook himself has made clear. This will be the first orderly transition in Apple's history, as Apple's previous CEO transitions have been far from orderly, including when Cook replaced the company's co-founder during Jobs' illness.
But even if Ternus quickly puts his stamp on Apple, it may still take longer for Apple to completely shake off Cook's influence. Cook now serves as executive chairman and remains an important core figure within Apple. While Ternus is ready to make a number of changes, including speeding up product development, it may be some time before the company is completely reshaped to his vision.
Cook will play a particularly key role in some areas
, such as Apple’s dealings with the White House, China, and dealing with memory shortages. Cook even said in his last internal memo to employees as CEO that he looked forward to meeting employees at Apple campuses around the world. That's not because Cook doesn't trust Ternus, but because even after stepping down as CEO, Apple remains the focus of Cook's life.
Cook and Turnus
As part of the transition, Cook will move out of his office in Apple Park District 7 and hand over the space to the new CEO. This means that Ternus will settle in the executive office area for the first time. Before being named CEO, he had been working with the hardware engineering team in an office away from Apple's power centers. Apple software chief Craig Federighi is one of the other executives who has been absent from the executive suite for a long time and still works with his team elsewhere on Apple’s campus.
There are other signs that Cook won't just be traveling the world, hiking with his new bodyguard, and working from his Southern California home near Palm Springs. The executive chairman will get a new office on Apple's campus.
Huge salary
However, the biggest signal that Cook will still be deeply involved in Apple's affairs is his huge new salary package. The plan has sparked concern among Apple executives since it was announced after the market closed last Tuesday.
The compensation of Apple executives mainly consists of basic salary, cash bonus and stock units that vest in installments. Next year, Cook's base salary will be $2 million, down from the $3 million he earned as CEO. The base salary of $3 million is now obtained by Ternus. Still, $2 million is double the typical base salary for Apple's senior vice presidents and executives.
For restricted stock units in 2027, Ternus received a target amount of $55 million (excluding salary and unspecified bonus), while Cook received $45 million. Those numbers will fluctuate based on Apple's share price performance, but Ternus' compensation is likely not far from what Cook has been paid in the CEO role in recent years. Still, Cook's new pay package is highly unusual for a chairman.
Before Cook became executive chairman, Art Levinson served as Apple's non-executive chairman. Last year, he received less than $560,000 in total compensation from Apple, including salary, stock and other forms of compensation.
Levinson's compensation as Apple chairman is less than $560,000
In terms of Cook's salary, perhaps the most appropriate comparison is Bob Iger. In his first year after stepping down as Disney CEO, he received a salary of $46 million as executive chairman, a full $13.4 million more than the person who succeeded him as CEO. This comparison can only go so far, because Disney's handover was not smooth, and Iger later returned as Disney CEO.
Cook’s salary clearly shows that he will remain deeply involved in Apple affairs after stepping down as CEO
. In fact, Cook will still make more than the CEOs of most large public companies going forward, and almost double the historical compensation levels of other top Apple executives, including the CFO and COO.The structure of the two's compensation packages is also different: 75% of Ternus's stock award is tied to Apple's performance relative to its peers, while only half of Cook's award is tied to performance. Because of these differences, there's even an unlikely scenario: Cook's actual salary in 2027 could exceed Ternus.
This salary package fully illustrates the expectations placed on Cook in the new stage. Cook himself has said he expects to remain chairman for a long time, and it's now clear that it will be a position that requires an active involvement in the company.
Will this cause problems for Ternus? At this point, probably not. Cook's management style is collaborative, and he clearly has a lot of faith in Turnus' abilities. Cook also obviously attaches great importance to orderly transfer of power. He once told employees: "There can only be one CEO at any time."
But avoiding a power struggle does not mean achieving a complete handover
. While Cook may take some time to enjoy semi-retirement, he said Apple will remain his "top priority" in life.This also leaves Apple, employees and investors with some big questions: When and how will Cook finally exit Apple? When will Apple completely become Ternus's company?
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