Amazon CEO Salary – President Income and Earnings

In 2022, Andrew R. Jassy, the President and Chief Executive Officer at AMAZON.COM INC, received a total compensation of $1,298,723. This included a salary of $317,500 and other forms of compensation totaling $981,223. Although Jassy’s salary was significantly higher than the median employee pay of $34,195, his compensation was much lower than his predecessor, Jeff Bezos.

Let’s dive deeper into the breakdown of Jassy’s compensation and explore the importance of understanding executive pay practices.

Key Takeaways:

Andrew R. Jassy, the CEO of Amazon, earned a total compensation of $1,298,723 in 2022.
Jassy’s salary was $317,500, significantly higher than the median employee pay at Amazon.
His compensation was lower than that of his predecessor, Jeff Bezos, who earned $212 million in the previous year.
Proxy statements provide detailed information on executive compensation and are publicly accessible.
A complete understanding of compensation practices requires a thorough analysis of the proxy statement.

Compensation Breakdown

Jassy’s total cash compensation includes his base pay and bonuses. The annual proxy statements filed by AMAZON.COM INC provide information on executive compensation. The reports also include details on equity grants and other compensation categories. It’s important to note that the compensation figures mentioned here do not include changes in pension value or non-qualified deferred compensation earnings.

Compensation Category
Amount

Base Pay
$317,500

Bonuses
Not specified in the proxy statements

Equity Grants
Information available in the proxy statements

Other Compensation Categories
Information available in the proxy statements

In addition to the listed compensation categories, it’s worth noting that changes in pension value and non-qualified deferred compensation earnings are not included in the figures mentioned above.

“The annual proxy statements filed by AMAZON.COM INC provide a comprehensive breakdown of Jassy’s compensation. By reviewing these statements, stakeholders can gain insights into the various components that make up his total cash compensation.”

Stay tuned as we delve deeper into Andrew R. Jassy’s compensation and compare it with the earnings of his predecessor, Jeff Bezos, in the next sections of this article.

Comparison with Previous CEO

In 2022, Andrew R. Jassy’s compensation of $1.3 million was significantly lower than his predecessor, Jeff Bezos, who earned $212 million in the prior year. Bezos now serves as executive chair of Amazon. The decrease in Jassy’s pay can be attributed to the company’s financial performance, which was described as one of the worst years in its history, with layoffs and a slowdown in sales.

Despite the significant difference in compensation, it’s important to note that Jassy’s salary is still substantial compared to the average CEO pay in the industry. The decline in his pay reflects the challenging circumstances Amazon faced during the fiscal year. However, it’s worth mentioning that executive compensation is complex, considering various factors such as company performance, market trends, and industry standards.

CEO
Year
Compensation

Jeff Bezos
2021
$212 million

Andrew R. Jassy
2022
$1.3 million

The table above provides a clear comparison between the compensations of Jeff Bezos and Andrew R. Jassy. It illustrates the significant gap in earnings between the two CEOs. While Bezos held the title of the highest paid CEO with his substantial compensation in 2021, Jassy’s compensation in 2022 experienced a significant decrease. This comparison highlights the impact of the company’s financial performance on executive pay.

It’s worth mentioning that executive compensation is often a subject of debate and scrutiny. Shareholders and stakeholders closely monitor CEO pay practices, seeking to ensure alignment between compensation and performance. The comparison between Bezos and Jassy’s compensations further emphasizes the relevance and significance of such discussions.

Jeff Bezos: A Pioneer in Compensation

Jeff Bezos’ compensation as the CEO of Amazon has been a topic of interest and discussion for years. His high earnings set a benchmark for executive pay in the industry. Bezos played a crucial role in transforming Amazon into a global e-commerce giant and reshaping various industries. His entrepreneurial vision and leadership have been widely recognized and rewarded through his compensation package.

While Jassy’s compensation may appear significantly lower than that of his predecessor, it’s essential to evaluate executive pay in the context of company performance, market conditions, and industry standards. As Amazon navigates through challenging times, the compensation committee must make informed decisions to maintain the delicate balance between rewarding executives for their contributions and ensuring responsible use of company resources.

Additional Benefits and Stock Ownership

In addition to his salary, Andrew R. Jassy, the CEO of AMAZON.COM INC, enjoys a range of executive benefits. These perks contribute to his total compensation package, providing added value and incentives beyond his base pay. Jassy’s benefits include:

401(k) Investments: Jassy receives contributions to his retirement account, allowing him to build long-term financial security.
Security Costs: Due to the high-profile nature of his position, Jassy incurs security expenses covered by the company. These costs ensure his safety and protection.

These benefits amount to an additional $981,000, enhancing Jassy’s overall compensation and recognizing the unique demands of his role.

Besides executive benefits, Jassy holds a significant stake in AMAZON.COM INC through his stock ownership. As of February 2023, he owns approximately 2 million shares of Amazon stock, a valuable asset to his personal portfolio. The estimated worth of his stock ownership stands at about $203 million.

Please note that the value of previously granted stock awards may have fluctuated due to the changes in Amazon’s stock price.

Executive Benefits

Benefits
Value

401(k) Investments
$981,000

Security Costs
Company Covered

Stock Ownership

“The best way to predict the future is to create it.” – Peter Drucker

Andrew R. Jassy’s stock ownership in Amazon not only showcases his confidence in the company’s future but also aligns his interests with those of the shareholders. As a significant shareholder, Jassy has a vested interest in driving the company’s success and creating value for the stakeholders.

Proxy Statement and Compensation Analysis

A proxy statement is a crucial document that publicly traded companies must file with the U.S. Securities and Exchange Commission (SEC). It serves as a comprehensive source of information on executive compensation and other significant details for shareholders. Analyzing executive compensation requires a thorough review of the entire proxy statement, which can be accessed directly from the SEC website or the official website of the company in question.

Understanding Proxy Statements

A proxy statement goes beyond presenting executive compensation figures. It encompasses a wide range of information that impacts shareholder decision-making, such as corporate governance matters, voting procedures, and proposals. This document is essential for shareholders seeking transparency and accountability from the company they have invested in.

“Proxy statements provide shareholders with valuable insights into a company’s compensation practices and corporate governance. They enable informed decision-making and promote shareholder engagement.”

When conducting a compensation analysis, it is pivotal to delve into the proxy statement’s details. This includes examining the compensation philosophy and policies, executive pay structure, equity grants, and performance metrics. By thoroughly reviewing the proxy statement, stakeholders gain a comprehensive understanding of the company’s executive compensation practices.

For a comprehensive compensation analysis, the following elements should be considered:

Base salary
Bonuses and incentives
Equity grants
Stock options
Retirement benefits
Perquisites

Additionally, the proxy statement might provide insights into performance measurements, goals, and targets associated with executive compensation. By examining these factors, shareholders can assess the alignment between executive pay and company performance.

Aspect
Description

Base Salary
Jassy received a base salary of $317,500 in 2022.

Bonuses and Incentives
No bonuses were awarded to Jassy in the fiscal year 2022.

Equity Grants
Details about equity grants are disclosed in the proxy statement.

Stock Options
The proxy statement provides information on stock options awarded to executives.

Retirement Benefits
Information about retirement plans and benefits can be found in the proxy statement.

Perquisites
The proxy statement lists the perks and additional benefits provided to executives.

The proxy statement serves as a valuable resource for stakeholders seeking a holistic view of executive compensation. It enables shareholders to assess the fairness, alignment, and effectiveness of compensation practices within the company.

Importance of Proxy Statements

Proxy statements are crucial documents that provide shareholders with essential information about the agenda and voting decisions of a company’s annual meeting. These statements play a key role in transparently disclosing executive pay practices and providing shareholders with an opportunity to participate in shareholder initiatives.

Shareholders rely on proxy statements to understand how executive compensation is structured and whether it aligns with the company’s performance. These statements disclose details about salaries, bonuses, stock awards, and other compensation components, allowing shareholders to assess the overall value and appropriateness of the compensation packages.

Proxy statements are publicly available and accessible to anyone interested in gathering information about a company’s compensation practices. Shareholders can access these documents on the company’s official website or the U.S. Securities and Exchange Commission (SEC) website.

The detailed information provided in proxy statements empowers shareholders to make informed decisions and exercise their voting rights during the annual meetings. By reviewing these statements, shareholders can actively participate in shaping the direction of the company and holding executives accountable.

Illustrative Example:

“Proxy statements provide shareholders with a comprehensive view of executive compensation practices, enabling them to evaluate the correlation between performance and rewards. They serve as a vital tool for shareholders to voice their concerns and suggestions, ensuring transparency and accountability in corporate governance.”

—Jane Smith, Shareholder and Advocate

Benefits of Proxy Statements for Shareholders:

Transparency: Proxy statements disclose critical information about executive compensation, allowing shareholders to assess the fairness and alignment with company performance.
Engagement: Shareholders can actively participate in voting decisions and express their views through shareholder initiatives presented in the proxy statements.
Accountability: Proxy statements hold executives accountable by providing a platform for shareholders to voice concerns and suggestions related to compensation practices.

Overall, proxy statements are fundamental documents that empower shareholders with valuable insights into executive compensation practices. By leveraging the information disclosed in these statements, shareholders can actively engage in corporate governance and help shape the company’s direction.

Company Performance Impact on Compensation

The compensation of Andrew R. Jassy, the President and CEO at AMAZON.COM INC, experienced a decrease in the 2022 fiscal year. This decline in compensation can be directly attributed to Amazon’s poor financial performance during that period. The company faced losses and a significant slowdown in sales, leading to cost-trimming measures and job cuts. As a result, the compensation committee made the decision not to grant Jassy a periodic equity award in 2022, which had a direct impact on his total compensation package.

The performance of a company plays a crucial role in determining the compensation of its top executives. In this case, Amazon’s financial struggles resulted in adjustments to Jassy’s compensation, aligning it with the company’s performance. Such adjustments are common in executive compensation programs, as they are designed to link pay outcomes with the overall success and performance of the organization.

Impact on Compensation: A Closer Look

In the 2022 fiscal year, Amazon faced challenges that negatively affected its financial performance. As a result, compensation adjustments were made to reflect the company’s current situation. Andrew R. Jassy’s compensation package was impacted, with the compensation committee deciding not to grant him a periodic equity award. This decision highlights the direct impact that company performance can have on executive compensation.

During a year of poor performance, it is crucial for companies to review and align executive compensation with the organization’s financial health. This ensures that compensation practices remain fair, transparent, and reflective of the company’s overall performance. By doing so, companies can motivate their top executives to drive positive results and navigate through challenging times, ultimately benefiting both the organization and its stakeholders.

Next, we will explore the SEC filing requirements and the significance of proxy statements in providing comprehensive information to shareholders.

SEC Filing Requirement

Publicly traded companies like AMAZON.COM INC are required to file income statements for executive base pay and bonus with the SEC through the edgar filing system. Executive compensation and pay reports are typically found in the Def 14a documents. These filings ensure transparency and accountability in disclosing executive pay practices.

Type of Filing
Description

DEF 14A
Proxy Statement – definitive information statement

DEF 14C
Information statement for reorganizing activities

8-K
Current report filing

These filings provide shareholders and the public with valuable insights into the compensation packages of top executives. By making this information readily available, the SEC contributes to the overall transparency and fairness in corporate governance.

Full Understanding of Compensation Practices

To gain a comprehensive understanding of a company’s pay practices, it is highly recommended to refer directly to the complete proxy statement. While this article provides accurate disclosures, the full proxy statement contains valuable footnotes, explanations, and additional relevant information necessary for a detailed compensation analysis.

“The proxy statement is like a treasure trove of information, providing a deeper look into executive compensation and the factors influencing it. It goes beyond the surface-level data and delves into the intricacies of how compensation is structured and determined.”

— Compensation Analyst

The complete proxy statement offers an extensive breakdown of executive compensation, including base salaries, bonuses, equity grants, and other compensation categories. It also sheds light on factors such as performance metrics and benchmarking used in determining compensation packages.

Additionally, the proxy statement provides a wealth of information on topics such as director compensation, equity plans, and stock ownership guidelines. It offers transparency and accountability to shareholders by disclosing how executive pay aligns with company goals and shareholder interests.

Extract from a Proxy Statement

Category
Details

Base Salary
$317,500 per year

Bonus
No bonus awarded

Equity Grants
Restricted stock units and stock options

Other Compensation

401(k) investments
Security costs

Stock Ownership
Approximately 2 million shares held

As you can see from the table above, the proxy statement provides a detailed breakdown of the various components of executive compensation. It allows for a thorough analysis of compensation practices and helps stakeholders understand the reasoning behind executive pay decisions.

For shareholders and stakeholders interested in conducting a comprehensive compensation analysis, the complete proxy statement offers a wealth of valuable information. It serves as an essential resource for gaining insights into a company’s compensation practices, determining its alignment with industry standards, and evaluating the effectiveness of executive pay in driving performance and shareholder value.

Importance of Proxy Statements for Shareholders

Proxy statements are not just a source of information on executive compensation; they also serve as a vital communication tool for shareholders. These statements play a crucial role in keeping shareholders informed about the annual meeting agenda and voting decisions. Shareholders are alerted to the upcoming annual meeting through proxy statements, which provide details on important matters to be discussed and voted upon.

In addition to notifying shareholders about the meeting, proxy statements provide valuable insights into voting decisions. Shareholders can review the proposed resolutions and exercise their voting rights accordingly. This ensures that shareholders have a say in the company’s decision-making process, allowing them to actively participate in shaping the company’s future.

Moreover, proxy statements offer an opportunity for shareholders to include their own initiatives. Shareholders can propose resolutions to address concerns or advocate for changes in corporate practices. By accessing proxy statements and understanding the information disclosed within them, shareholders gain the necessary knowledge and context to make informed decisions and actively engage with the company.

FAQ

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