- Amazon CEO Andy Jassy’s pay was just $1.3 million in 2022 — a huge drop from $212.7 million in 2021.
- While not receiving any in 2022, he got nearly $212 million in stock awards in 2021 which are to vest for 10 years.
- They are to represent most of his compensation for the coming years.
Amazon CEO Andy Jassy took a huge pay cut last year.
Jassy was paid just $1.3 million in 2022, including a $317,500 base salary plus another $981,000 in 401(k) plan contributions and security costs, according to the company’s annual proxy statement filed on Thursday.
It’s a massive drop from the $212.7 million he received in 2021 when he got promoted to a leadership position. Jassy’s total compensation was $35.8 million in 2020.
That said, Jassy’s basic salary jumped 80% from $175,000 in 2021, according to Thursday’s filing which comes ahead of Amazon’s annual shareholder meeting on May 24.
In comparison, Apple CEO Tim Cook received $84 million in total compensation in 2022, including bonuses and a $3 million base salary — although this may fall to $49 million in 2023. Microsoft CEO Satya Nadella was paid a total compensation of $55 million in 2022.
Jassy’s much smaller compensation in 2022 was due to him not receiving any stock awards during the year. Jassy had received nearly $212 million in stock awards in 2021, but they will take 10 years to vest and are intended to represent most of his compensation for the coming years, Amazon said in a May 2022 regulatory filing. According to his stock vesting schedule, Jassy vested $31.9 million in 2022 and is expected to vest $18.9 million in 2023.
Meanwhile, Jeff Bezos, the founder and executive chair of Amazon, received $1.68 million in total compensation in 2022 — the same amount he received in 2021 and 2020.
Bezo’s salary included a base of $81,840 and a personal security allowance of $1.6 million. Bezos — who started Amazon from his garage in 1994 — has never received any stock-based compensation but is the e-commerce giant’s largest shareholder owning nearly 10% of its shares. Amazon is worth about $1 trillion as of Thursday, making it one of the world’s most valuable companies behind Apple, Microsoft, Saudi Aramco, and Alphabet.
Amazon’s proxy statement came on the same day Jassy issued an annual letter to the company’s shareholders. In the letter, Jassy described 2022 as “one of the harder macroeconomic years in recent memory.”
Like many other tech companies, Amazon has been dealing with a downturn in the industry after business boomed during the pandemic. However, earnings are weakening amid fears of an impending recession.
Amazon reported $278 million in net profit in the fourth quarter of 2022 — a sharp slowdown from $14.3 billion in net profit in the same quarter of 2021. To cut costs, Amazon announced two rounds of job cuts, slashing 27,000 jobs collectively.
Amazon shares closed 4.7% higher at $102.40 on Thursday. The stock is up 22% so far this year.