Amazon CEO Andy Jassy’s $212M in annual compensation isn’t quite what it seems

Amazon CEO Andy Jassy speaks at the 2021 GeekWire Summit. (GeekWire Photo / Dan DeLong)

Amazon CEO Andy Jassy’s total compensation for 2021, including his first six months as the tech giant’s chief executive, was more than $212 million, Amazon reported in its annual proxy statement Friday morning.

However, the vast majority of that comes from a one-time award of 61,000 shares of Amazon stock, granted to Jassy when he took over as CEO from founder Jeff Bezos in July of last year. The shares vest over 10 years, and more than 80% of them vest between five and 10 years after the grant date.

Here’s the vesting schedule for Jassy’s prior and new stock grants.

Amazon CEO Andy Jassy’s stock grant vesting schedule. (Image: Amazon’s 2022 Proxy Statement)

As part of the proxy statement, the Amazon board explains why Jassy’s compensation was set up this way.

Faced with the first CEO succession in the Company’s history, the Leadership Development and Compensation Committee determined it important to provide for clarity and stability through an award that is designed to establish a long-term owner’s perspective and encourage bold, long-term initiatives, in the same manner that Mr. Bezos’s shares as founder incentivized him to focus on long-term, expansive growth. Accordingly, this award is intended to represent most of Mr. Jassy’s compensation for the coming years. …

The Committee also reviewed current year and three-year average reported market compensation survey data for large technology and general industry CEOs, similar one-time awards made upon the promotion of CEOs of other large technology companies, and current year and three-year average reported and realized compensation of CEOs of other large cap companies, including Alphabet, Apple, Meta, Microsoft, Salesforce, and Walmart. For example, the Committee reviewed data showing that the average realized compensation from 2018 through 2020 for the CEOs of Alphabet, Apple, and Microsoft, and for the COO of Meta, ranged from $151 million a year to $220 million a year. …

The Committee intends for this restricted stock unit award to serve as a long-term incentive for Mr. Jassy, and, accordingly, believes it should be viewed as compensation over the 10-year term and not solely as compensation for 2021.

Jassy’s base salary of $175,000 is the same as in his prior role as Amazon Web Services CEO.

See also  Amazon begins rollout of Rivian electric delivery vans across U.S. in drive to shrink carbon footprint

Other notes from the proxy statement:

  • Bezos’ salary in his new role as executive chair remained the same, at $81,840, and the company continued to pay $1.6 million annually for his security arrangements, according to a footnote in the proxy statement.
  • Bezos has voting control over 64.5 million shares of Amazon stock, or 12.7% of the company. That includes 14.7 million shares that are owned by his former wife, MacKenzie Scott, under terms of their divorce.
  • Amazon will hold its annual meeting at 9 a.m. Pacific on Wednesday, May 25, and it will continue to hold the meeting virtually, maintaining a practice that began in the early months of the pandemic.
  • The meeting will include a shareholder vote on the company’s proposal for a 20-to-1 stock split.
  • Eight shareholder proposals are up for vote at the meeting, seeking a variety of reports and actions on topics including human rights, packaging materials, charitable contributions, lobbying, board structure, gender and race pay gaps, diversity and equity. Amazon’s board recommends that shareholders vote against each proposal.

More: In historic milestone for Amazon and organized labor, workers at N.Y. warehouse vote to unionize

Related Posts

Report: Veteran sports broadcaster Al Michaels to call Amazon’s NFL games on Thursdays

Al Michaels in Los Angeles in 2018. (BigStock Photo) Al Michaels, the longtime NFL play-by-play broadcaster, is Amazon’s pick to call “Thursday Night Football” games streaming on…

Seattle Pride drops Amazon sponsorship, cites company’s donations to politicians that support ‘anti-LGBTQIA+’ legislation

Seattle Pride is initiating a process to evaluate its corporate sponsors and will not partner with Amazon for its 2022 pride parade. (Seattle Pride Photo) Seattle Pride…

Amazon opens supply hub for Ukrainian refugees, its largest humanitarian aid facility ever

Amazon is helping to store and distribute supplies to aid Ukrainian refugees in European countries. (Amazon Photo) Amazon is converting warehouse space in Slovakia, previously used to…

Amazon names Al Michaels and Kirk Herbstreit as the voices of ‘Thursday Night Football’ on Prime

(Amazon Image) Amazon has officially announced that veteran sports play-by-play announcer Al Michaels and college football analyst Kirk Herbstreit will be the broadcast duo for “Thursday Night…

Amazon Games studio head Mike Frazzini is leaving the company

Mike Frazzini. (GeekWire FIle Photo) Mike Frazzini, the head of Amazon Games, is stepping down from his position. Bloomberg reported Frazzini has told staff at Amazon that…

Unlock Venture Partners puts its portfolio in the metaverse

A Los Angeles- and Seattle-based funding agency could also be the first to place its personal portfolio web page in the metaverse. “So far as we all…

Leave a Reply

Your email address will not be published. Required fields are marked *