Seattle: Amazon.com Inc will grant its Chief Executive Officer Andy Jassy no new stock in 2022, narrowing the pay gap between the online retailer’s top boss and rank-and-file employees, the company said in a securities filing on Thursday. .
At the same time, it awarded more than $40 million to recently elevated CEOs of its e-commerce and cloud businesses at 2022 share prices, and JC took home a similar amount from its own earlier grants, the filing showed. .
Amazon has been battling inflation and recession fears for months which has prompted its customers to tighten their budgets. Aiming to reduce costs, the company said it would cut 27,000 jobs and reduce some stock awards.
Its average employee globally in 2022 will have a JC to salary ratio of 1 to 38, or about $34,000, compared to the CEO’s salary and benefits of $1.3 million. The year before, the ratio was 1 to 6,474, reflecting the stock grant Amazon said would take a decade for JC to fully earn out.
Union officials and US politicians have long criticized the outsized compensation of CEOs relative to employees, including at Amazon, where most of its 1.5 million people work in and around warehouses. Amazon said its average full-time salary in the United States was $41,762.
The company said in the filing that JC’s 2021 award, originally valued at $214 million, was “intended to represent the majority of his compensation for years to come,” which is why it may grant more stock in 2023 or the previous year. There was no plan.
The package has rapidly degraded since it was delivered by Amazon. Jesse’s award lost approximately $148 million of its value in 2022, along with older grants, reflecting the decline in the company’s stock.
Still, he took $31.9 million from those old grants that vested last year, the filing said.
(Reporting by Jeffrey Destin in Palo Alto, California; Editing by Sonali Paul)
Disclaimer: This report is generated automatically from Reuters news service. ThePrint is not responsible for its content.
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