AP Incoming Amazon CEO Andy Jassy has been given stock awards valued at well over $200 million based on the tech giant’s four-figure stock price at present. Jassy has been granted 61,000 shares of Amazon common stock as of July 5, when he takes over the helm from founder Jeff Bezos. The stock awards will vest over the next 10 years, the company disclosed Friday in a Securities and Exchange Commission filing. Amazon shares closed Friday at $3510.98.
That's great news for him, but what a hot seat to be in. It takes an extremely special person to fill that role.
The company sells itself by being itself. I bet they will have a killer Q4 this holiday season. Maybe not as record-breaking as last year, but awesome all the same. It never gets old. X-Mas is coming!
I always find the level of it ignorance in almost any article about stock or option grants amusing. For example, the third sentences contradicts the second; we're told the grant is "as of July 5th" and then goes on to say it "vests over 10 years" Getting stock that vests over 10 years probably based on performance hurdles is a universe away from getting stock granted on July 5th, but the author probably doesn't understand what the term "vesting" means.
How much will it cost Amazon to fire him if he doesn't perform? Obviously not $200 million but 10's of millions i would guess. He is going to make a fortune either way, thats why he has such a big grin on his face.
Probably worth a billion or more already. edit: his current stock holdings are worth about 300mm and over the course of the last 8 years he has sold 40k shares. his pay actually seems to be how an executive should be paid. Prior to 2015 his net worth was like 30mm. And then as his division proceeded to add 1 trillion in market cap to Amazon his net wealth went up commensurately.
Still seems excessive for executive compensation. He had no financial downside coming in, so I think the skew is out of proportion.
i disagree. He through his leadership has created trillions in wealth for Amazon. If he was wrong the efforts of thousands of people would be squandered and Amazon shareholders wouldn’t have reaped a trillion dollars worth of value.
And that's the beauty of creating wealth through building companies vice trading, no downside is necessarily required to have upside. For example you're an entrepreneur, a VC gives you money with no downside. You either succeed and you make a bunch of money, or you fail and end up with your salary and you look for a new job, no worse off than the latest 10,000 people GE laid off. That's why I trade as a hobby and start companies for a living!