Amazon CEO Andy Jassy's compensation for 2023 totaled $29.2 million, with a 12% drop from 2022 due to a decline in Amazon's share price. His base pay rose 15% to $365,000, and he realized $27.8 million from shares that vested in 2023. Shareholders have questioned the vesting of Jassy's stock-based compensation and the lack of specific performance criteria. Additionally, Judith McGrath, an Amazon board member since 2014, will not seek re-election this year, and the company has named Andrew Ng as a new board member.
Key Takeaways
- Amazon CEO Andy Jassy's 2023 compensation was $29.2 million, down 12% from 2022 due to declining share prices and fewer shares vesting.
- Jassy's base pay rose 15% to $365,000 in 2023, reflecting Amazon's broader increase in maximum base pay for workers.
- He realized a value of $27.8 million from shares that vested and Amazon spent $986,164 on his security costs in 2023.
- Jassy's compensation, reported as a negative $147.7 million in 2022, posed a challenge in relying on the SEC's approach.
- With a pay ratio of 37:1, Jassy's base pay and other compensation in 2023 compared to a median employee compensation of $36,274.
News Content
Amazon CEO Andy Jassy's 2023 compensation totaled $29.2 million, a 12% decrease from the previous year. This decrease was attributed to a decline in Amazon's share price and fewer shares vesting in 2023 compared to 2022. The figures detailed in Amazon's proxy statement include Jassy's base pay increase and the value of shares vested.
The scrutiny over Jassy's compensation stems from a one-time special stock award upon becoming CEO in 2021, raising questions about the lack of conditions on stock-based compensation and shareholder approval. In addition, Amazon's pay ratio disclosure revealed Jassy's $1.36 million compensation compared to a median employee compensation of $36,274, reflecting a pay ratio of 37:1. The article also highlights comparisons with other company CEOs' compensation and pay ratios.
Analysis
Amazon's CEO Andy Jassy's 12% decrease in compensation in 2023, attributed to a decline in Amazon's share price and fewer shares vesting, may impact investor confidence and employee morale. The scrutiny over Jassy's compensation raises questions about stock-based compensation conditions and shareholder approval, potentially leading to increased regulatory scrutiny. The pay ratio disclosure could also prompt public and employee relations challenges. Short-term consequences may include negative stock reactions and internal discontent, while long-term impacts may encompass corporate governance reforms and potential compensation restructuring. This could affect Amazon's stock performance, regulatory relationships, and employee relations, as well as influencing compensation practices at other companies.
Did You Know?
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Share Vesting: When employees are granted stock options as part of their compensation, the vesting period refers to the time it takes for the options to become fully available for the employee to exercise or sell.
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Pay Ratio Disclosure: This refers to the mandatory disclosure by public companies of the ratio between the CEO's total compensation and the median employee's total compensation. It aims to provide transparency around income disparity within the company.
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Special Stock Award: This is a one-time award of stock or stock options granted to an executive for specific achievements or milestones, such as assuming a new leadership role.