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Ah yes, the guys who makes 6,474 times the median Amazon employee’s salary is going to lay off a bunch of people doing actual work to cut costs. https://fortun

Ah yes, the guys who makes 6,474 times the median Amazon employee’s salary is going to lay off a bunch of people doing actual work to cut costs. https://fortune.com/2022/06/02/fortune-500-amazon-ceo-andy-jassy-compensation/ https://fortune.com/2022/06/02/fortune-500-amazon-ceo-andy-j... Andy's package is so excessive that even the advisory board objects to it https://www.businessinsider.com/amazon-ceo-andy-jassy-salary-excessive-report-vote-down-2022-5 https://www.businessinsider.com/amazon-ceo-andy-jassy-salary...

jrib 4y ago
> In 2021, Jassy received $212,701,169 in total compensation, Insider reported in April, citing a proxy filing the company submitted. Only $175,000 of that came from his salary. The rest came from shares: He was awarded 61,000 shares that would vest over 10 years, worth $211,933,520, when he became CEO.
- HDThoreaun 4y ago
  Don't worry, the vest is back loaded and he'll get pip'd before that kicks in
- gruez 4y ago
  >He was awarded 61,000 shares that would vest over 10 years, worth $211,933,520, when he became CEO. How did they get $211,933,520? 61,000 shares multiplied by the price at the time (eyeballing the chart, the 2021 price looks to be around $160) gets you $9,760,000.
  - missedthecue 4y ago
    There was a stock split
- mrep 4y ago
  So 21 million a year. Levels.fyi has an SDE III at 355k a year [0] and a level above that at 538k which is usually what most pure IC managers are at. That's a 57% comp for moving up one level moving. 21,000,000/350,000 = 60x. If they have say 8 managers between IC and CEO, thats 60^(1/9) = 57.6% comp growth per level. Doesn't seem so ridiculous of a compensation if you want to keep the carrot above the stick at each level of the management chain. [0]: https://www.levels.fyi/companies/amazon/salaries/software-engineer https://www.levels.fyi/companies/amazon/salaries/software-en...
- chrisbolt 4y ago
  Why does it count as 2021 total comp if it doesn't fully vest until 2031?
tonymet 4y ago
He generated practically all of Amazon's earnings over the past 15 years . When amazon retail was burning cash, AWS was generating high margins keeping the company alive. Andy Jasy is under-compensated IMO. He should be getting half of Bezos' shares.
- yogthos 4y ago
  some people on this site have brains as smooth as bowling balls
  - tonymet 4y ago
    sorry?
missedthecue 4y ago
Andy Jassey will make a lot of money as CEO of Amazon, but you're taking a long term stock comp vesting plan based on performance based incentives and comparing it to the annual salary of a workforce skewed by hourly paid warehouse workers. Andy Jassey's salary is $175,000
- dymk 4y ago
  We all know that CEOs get most of their comp in equity. It’s not a gotcha. It’s insanely high still, for a company laying off thousands of people.
- Retric 4y ago
  That’s a pure tax dodge. His actual compensation is vastly above 175,000$ but by structuring it differently they can vastly reduce the taxes paid.
  - extesy 4y ago
    And how exactly the taxes are being dodged? All those millions in RSUs are still taxed as an ordinary income when they vest.
    - makestuff 4y ago
      Not sure if this is the case with his plan but companies will issue options to executives for the tax benefits. Typically they issue incentive stock options (ISO) and any amount over the strike price is long term capital gains.
    - Retric 4y ago
      Time value of money means it’s better to be paid money today than in 5 years, but taxes mean it can be beneficial to get RSUs on a vesting schedule rather than cash. For ease of calculation: 50% income tax and 20% capital gains, stock doubles in value. Get paid 10M, pay 5M in tax. Buy 5M in stock which is worth 2x as much in 5 years when you sell it. Pay 5M * 20% = 1M in capital gains. Keep 9M at the end of the day. Get paid 10M in RSUs. Sell when they vest at 2x the value in 5 years. 20M pay 50% in capital gains and keep 10M.
fdsafdsafdasf 4y ago
I don't think you know much about Andy Jassy if you are saying that he has not done actual work.
rufus_foreman 4y ago
>> Ah yes, the guys who makes 6,474 times the median Amazon employee’s salary is going to lay off a bunch of people doing actual work to cut costs Yeah. That's what I would do too if I was the CEO of Amazon. What would you do differently?
- yogthos 4y ago
  here's an example of what can be done differently https://www.gamedeveloper.com/business/nintendo-management-taking-pay-cuts-after-poor-fiscal-results https://www.gamedeveloper.com/business/nintendo-management-t...
  - bobsmooth 4y ago
    That would require integrity and empathy.
    - yogthos 4y ago
      the two qualities that the corporate ladder selects against
  - dartharva 4y ago
    2014 article. I'd stop being amused if Nintendo's current management still had the balls to do this.
    - yogthos 4y ago
      It's the same management last I checked, and C level management in Japan is generally compensated at a much lower rate than in US in general. In fact, US has wildly higher CEO pay than anywhere else https://www.wtwco.com/en-CA/Insights/2020/12/ceo-pay-landscape-in-japan-the-us-and-europe-2020-analysis https://www.wtwco.com/en-CA/Insights/2020/12/ceo-pay-landsca...

jrib 4y ago

> In 2021, Jassy received $212,701,169 in total compensation, Insider reported in April, citing a proxy filing the company submitted. Only $175,000 of that came from his salary. The rest came from shares: He was awarded 61,000 shares that would vest over 10 years, worth $211,933,520, when he became CEO.

HDThoreaun 4y ago
Don't worry, the vest is back loaded and he'll get pip'd before that kicks in
gruez 4y ago
>He was awarded 61,000 shares that would vest over 10 years, worth $211,933,520, when he became CEO. How did they get $211,933,520? 61,000 shares multiplied by the price at the time (eyeballing the chart, the 2021 price looks to be around $160) gets you $9,760,000.
- missedthecue 4y ago
  There was a stock split
mrep 4y ago
So 21 million a year. Levels.fyi has an SDE III at 355k a year [0] and a level above that at 538k which is usually what most pure IC managers are at. That's a 57% comp for moving up one level moving. 21,000,000/350,000 = 60x. If they have say 8 managers between IC and CEO, thats 60^(1/9) = 57.6% comp growth per level. Doesn't seem so ridiculous of a compensation if you want to keep the carrot above the stick at each level of the management chain. [0]: https://www.levels.fyi/companies/amazon/salaries/software-engineer https://www.levels.fyi/companies/amazon/salaries/software-en...
chrisbolt 4y ago
Why does it count as 2021 total comp if it doesn't fully vest until 2031?

tonymet 4y ago

He generated practically all of Amazon's earnings over the past 15 years . When amazon retail was burning cash, AWS was generating high margins keeping the company alive. Andy Jasy is under-compensated IMO. He should be getting half of Bezos' shares.

yogthos 4y ago
some people on this site have brains as smooth as bowling balls
- tonymet 4y ago
  sorry?

missedthecue 4y ago

Andy Jassey will make a lot of money as CEO of Amazon, but you're taking a long term stock comp vesting plan based on performance based incentives and comparing it to the annual salary of a workforce skewed by hourly paid warehouse workers. Andy Jassey's salary is $175,000

dymk 4y ago
We all know that CEOs get most of their comp in equity. It’s not a gotcha. It’s insanely high still, for a company laying off thousands of people.
Retric 4y ago
That’s a pure tax dodge. His actual compensation is vastly above 175,000$ but by structuring it differently they can vastly reduce the taxes paid.
- extesy 4y ago
  And how exactly the taxes are being dodged? All those millions in RSUs are still taxed as an ordinary income when they vest.
  - makestuff 4y ago
    Not sure if this is the case with his plan but companies will issue options to executives for the tax benefits. Typically they issue incentive stock options (ISO) and any amount over the strike price is long term capital gains.
  - Retric 4y ago
    Time value of money means it’s better to be paid money today than in 5 years, but taxes mean it can be beneficial to get RSUs on a vesting schedule rather than cash. For ease of calculation: 50% income tax and 20% capital gains, stock doubles in value. Get paid 10M, pay 5M in tax. Buy 5M in stock which is worth 2x as much in 5 years when you sell it. Pay 5M * 20% = 1M in capital gains. Keep 9M at the end of the day. Get paid 10M in RSUs. Sell when they vest at 2x the value in 5 years. 20M pay 50% in capital gains and keep 10M.

fdsafdsafdasf 4y ago

I don't think you know much about Andy Jassy if you are saying that he has not done actual work.

rufus_foreman 4y ago

>> Ah yes, the guys who makes 6,474 times the median Amazon employee’s salary is going to lay off a bunch of people doing actual work to cut costs Yeah. That's what I would do too if I was the CEO of Amazon. What would you do differently?

yogthos 4y ago
here's an example of what can be done differently https://www.gamedeveloper.com/business/nintendo-management-taking-pay-cuts-after-poor-fiscal-results https://www.gamedeveloper.com/business/nintendo-management-t...
- bobsmooth 4y ago
  That would require integrity and empathy.
  - yogthos 4y ago
    the two qualities that the corporate ladder selects against
- dartharva 4y ago
  2014 article. I'd stop being amused if Nintendo's current management still had the balls to do this.
  - yogthos 4y ago
    It's the same management last I checked, and C level management in Japan is generally compensated at a much lower rate than in US in general. In fact, US has wildly higher CEO pay than anywhere else https://www.wtwco.com/en-CA/Insights/2020/12/ceo-pay-landscape-in-japan-the-us-and-europe-2020-analysis https://www.wtwco.com/en-CA/Insights/2020/12/ceo-pay-landsca...