Amazon is set to grant its incoming CEO, Andy Jassy, more than $200 million in additional stock over a 10-year period, according to a regulatory filing. This significant stock award, totaling 61,000 shares, will be recorded on July 5th, marking the official transition from Jeff Bezos to Jassy as CEO.
The ultimate value of this stock award will be contingent on Amazon’s stock performance in the coming years. This approach is designed to incentivize Jassy to continue driving the company’s growth, considering that Amazon is currently valued at a substantial $1.77 trillion. While Amazon has not disclosed the specific vesting schedule for these shares, historical patterns suggest they will not vest immediately.
Jassy’s base salary has remained at $175,000, but in addition to this, he is receiving stock awards that are vesting this year and next, with a combined value of $45.3 million and $41.5 million, respectively. While this compensation package is substantial, it’s worth noting that other tech industry CEOs, such as Microsoft’s Satya Nadella and Apple’s Tim Cook, have received even larger stock vestments in recent years.
Amazon plans to discontinue its previous biannual stock grants to Jassy, with the newly announced award representing a significant portion of his future compensation. The company will also arrange for Jassy’s personal security.
This strategic move underscores Amazon’s commitment to ensuring a smooth leadership transition and maintaining its competitive edge in the tech industry under Jassy’s guidance.