Apple announced recently that Tim Cook will step aside as chief executive on 1 September 2026, and hand the role to the current head of hardware engineering, John Ternus. Cook will remain closely involved as executive chairman. If you’re a business owner, you might think about Succession Planning, or who’s going to take over your business when you decide to retire or relinquish day to day control. Apple described their leadership change as ‘a thoughtful, long-term succession planning process’.

So, are there lessons to be gleaned from Apple’s approach?

1. Succession takes time, so start early

Most obviously, succession planning needs to start well before the founder or business owner decides to leave.

John Ternus has spent twenty five years at Apple and has been involved in many of its product lines. He described Tim Cook as his mentor, suggesting that, at least in recent years, he has been steadily expanding his responsibilities and receiving incremental training and experience to prepare him for the role.

Succession then, is about building over time and not simply identifying a replacement at the last minute.

In practical terms, this means:

• Identifying potential successors well before they’re needed.
• Rotating responsibilities so they can build a breadth of experience.
• Testing their decision-making and building their confidence to take tough decisions under pressure.
• Allowing room for failure while you’re still around.

Even if the person you’ve identified never takes the top job, the process can still strengthen your business.

2. Internal successors can reduce risk

Apple’s decision to promote from within means its new CEO will have knowledge about the business that can’t be bought or quickly passed on to an external hire.

Hiring someone to take over who doesn’t know the business can leave it exposed to risks. For instance, business strategy can be disrupted, there could be a loss of vital relationships, and the business can become unsettled while a new status quo is established.

Promoting an internal successor doesn’t eliminate those risks, as we learnt ourselves, but it should reduce the unknowns. Continuity in leadership should provide stability.

3. The outgoing leader still matters

Another notable feature of the change in Apple’s leadership is that Tim Cook is moving to an executive chairman role, rather than there being a clean break. His continued involvement means his hard-won experience remains available to the business, but by defining a new role, he doesn’t interfere with the authority of the new CEO.

For business owners, a common challenge is how to step back in the business without becoming a bottleneck. If this is poorly handled, it can lead to:

• Confused accountability amongst staff.
• Slow decision-making.
• A successor who feels undermined.

The lesson is not that owners must remain involved, but rather that if they do, their roles need to be clearly redefined.

Final thoughts…

Apple’s CEO handover isn’t a template for every business, but it should provide some food for thought. Succession planning often works best when it is done gradually and deliberately.

If you’d like advice on succession planning in your business, the tax issues that go along with it, or on any other area of your business please get in touch. We’re here to help!

You can see the full details of Apple’s announcement here.