Amazon CEO Andy Jassy’s $214 million salary is ‘excessive’: Report

  • Amazon CEO Andrew Jassy’s $214 million package is excessive, two investor advisory firms say.
  • They also say top executive packages are “not connected” to performance criteria.
  • They are urging shareholders to vote against these packages at this month’s annual meeting.

Amazon CEO Andy Jassy’s salary package is too high.

That’s according to investor advisory firm Institutional Shareholder Services (ISS). “The value of the new CEO’s $214 million prize is excessive in the context of internal promotion,” ISS wrote in a report shared with clients on Thursday, the Financial Times reported.

“The compensation program lacks any connection to objective and pre-established performance criteria,” the report continued.

ISS is the world’s largest investor advisory firm. It gives recommendations to shareholders of listed companies on how they should vote.

ISS joined another advisory firm in urging shareholders to vote against unreasonable payment packages at Amazon. Last week, Glass Lewis said there is a disconnect “between pay and performance driven by unique awards” in the pay packages of top Amazon executives, Bloomberg reported.

Both firms suggest shareholders vote to reject compensation packages for Amazon’s top leaders in a nonbinding vote at the company’s annual meeting scheduled for May 25.

Jassy took over as CEO of Amazon from Jeff Bezos in July. In 2021, Jassy received $212,701,169 in total compensation, Insider reported in April, citing a representation filing the company filed. Only $175,000 of that came from his salary. The rest came from stock: He was given 61,000 shares to be vested over 10 years, worth $211,933,520, when he became CEO.

“The way the SEC rules work, we are required to report that grant as full compensation for 2021, when it will actually be awarded over the next 10 years,” an Amazon spokesperson told Insider in a statement emailed on Tuesday. Friday.

“What this amounts to from an annual compensation perspective is competitive with CEOs of other large companies and was approved by Amazon’s board of directors,” the spokesperson added.

Bezos, who stepped down as CEO, received $1,681,840 in total compensation in 2021. He earned a base salary of $81,840 and made $1.6 million in other forms of compensation without stock awards, according to the filing.

Jassy isn’t the only Amazon executive whose salary is in question. Shareholders are also expected to consider Adam Selipsky and Dave Clark pay packages in the vote later this month, Amazon’s SEC filing shows. Selipsky, who runs Amazon Web Services, earned nearly $81.5 million in 2021, most of it from a five-year stock grant. Clark leads Amazon’s retail and logistics business and was paid $56 million last year.

Both ISS and Glass Lewis have recently urged shareholders to vote against pay packages for the chief executives of German pharmaceutical conglomerate Bayer and media company Discovery, reports Bloomberg.

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