The CEO of e-commerce giant Amazon.com was the recipient of a prime compensation package in his first year leading the company. Here’s how much Andy Jassy made in 2021.
What Happened: Amazon.com Inc AMZN announced in February 2021 that Andy Jassy would become just the second CEO in Amazon history, replacing Jeff Bezos, the longtime leader and founder of the company.
It was announced Friday in a filing by Amazon that Jassy received compensation of $212.7 million in 2021. The majority of the compensation ($211.9 million) came in the form of restricted stock that vests over the next 10 years.
The vested stock is meant to “serve as a long-term incentive for Mr. Jassy,” according to the filing.
Jassy received a base salary of $175,000 in 2021, which is the same amount he received prior to becoming CEO.
Amazon reported that $589,1498 was spent on security expenses for Jassy in 2021.
Amazon founder Bezos received $81,840 as salary in 2021. Amazon reported $1.6 million was paid in security expenses for Bezos in 2021. Bezos has never received stock-based compensation from Amazon, according to the filing.
Bezos owns around 12% of Amazon, which is part of the reason he is the second-richest person in the world, with a net worth of $188 billion.
Along with the compensation announced in the filings, Amazon also disclosed it purchased $1.3 million in advertising from the Washington Post, a company owned by Bezos, in 2021.
Amazon also spent $8.5 million on digital content with the Washington Post in 2021. In 2020, Amazon spent $1.6 million and $6.5 million, respectively, on these two items from the Washington Post.
Amazon also sold $5.3 million in consumer goods to Blue Origin under a line of credit and paid Blue Origin $650,000 for data and content license feeds. Blue Origin is also owned by Bezos.
Why It’s Important: Jassy was previously the leader of Amazon Web Services, one of the company’s fastest growing divisions. Jassy joined Amazon in 1997 and the company likely wants to reward him for past success and keep him incentivized to remain at the helm.
While Jassy’s salary remained the same despite becoming the CEO, the high amount of compensation could be targeted as Amazon faces several unionization efforts at its facilities.
One facility in Bessemer, Alabama is calling for wages to increase from the minimum wage of $15.80 for regular full-time employees. Workers are calling for hourly wages of $30 along with new benefits.
AMZN Price Action: Amazon shares gained 0.35% Friday, closing at $3,271, according to Benzinga Pro.
Amazon CEO Andy Jassy. Courtesy photo.
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