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>90% of Jeff Bezos's wealth is still in Amazon stock despite being there 20 years. With Bezos, we are talking about amounts of money so large that I (and I ass
by pflats 12y ago
>90% of Jeff Bezos's wealth is still in Amazon stock despite being there 20 years.
With Bezos, we are talking about amounts of money so large that I (and I assume you) can't truly conceive of them. If 90% of his net worth is Amazon, Jeff Bezos has ~$3 billion dollars invested in companies other than his own. He's plenty diversified and if that 3 billion is properly managed, he'll never want for anything, ever. Even if Amazon stock falls to 1/10th of its value, Bezos's life won't appreciably change, he'll just have slightly less leeway when building his multi-million-dollar cave clocks.
- wpietri 12y agoSo? Median CEO pay in 2000-2011 was over $2m/year. That's excluding another $6m in stock and stock options. If that equity is locked up such that they get 1/30th every year for 30 years, they still won't be eating cat food. I'll note that the companies of the post-war economic boom (1946-1980) did well enough even though median CEO compensation (cash, stock, and options) was around $1m annually in real terms. So it's reasonable to think that we'll still be able to attract decent talent for the merely 2x that CEOs are getting in cash. The long-term stock would be an incentive for long-term behavior.