Amazon CEO Andy Jassy’s $214 million salary is “excessive” and should be vetoed by shareholders, the advisory firm said.

  • Two investment advisory firms said Amazon CEO Andrew Jassy’s $214 million package was excessive.
  • They are also saying that the CEO’s package is “not tied” to performance criteria.
  • They are urging shareholders to vote against these packages at their annual meeting this month.

Amazon CEO Andy Jassy’s Salary Package Is Too High

This is according to investment advisory firm Institutional Shareholder Services (ISS). ISS said in a report it shared with customers on Thursday that “the $214 million prize for the new CEO is excessive in the context of an internal promotion.” financial times reported

The report said that the “reward program was objective and lacked relevance to pre-set performance criteria.”

ISS is the world’s largest investment advisory firm. It provides shareholders of publicly traded companies with recommendations on how to vote.

ISS has joined another advisory firm urging shareholders to vote against Amazon’s unfair pay package. Last week, Glass Lewis told Bloomberg that Amazon’s top executives’ pay packages “have a disconnect between pay and performance driven by one-off rewards.” report.

The two companies are proposing that shareholders vote to reject Amazon’s top executive compensation package in a non-binding vote at the company’s annual meeting scheduled for May 25.

Jassy took over as CEO of Amazon from Jeff Bezos in July. Insiders reported that in April 2021, Jassy received a total of $212.7 million. Submission by proxy submitted by the company. Of that, only $175,000 came from his salary. The rest came from stocks. When he became CEO, he received 61,000 shares (worth $211,933,520) that would vest over 10 years.

“The way the SEC rules work, we must report those subsidies as total compensation for 2021,” an Amazon spokesperson said in an internal email statement on Friday.

“From an annual compensation standpoint, it’s competitive with CEOs of other large companies and has been approved by Amazon’s board of directors,” the spokesperson added.

Bezos, who stepped down as chairman, received a total compensation of $1,681,840 in 2021. According to the documents, he earned $81,840 in base salary and $1.6 million in other forms of compensation without stock.

Jassy isn’t the only Amazon executive whose pay is an issue. Shareholders are also expected to consider Adam Selipsky and Dave Clark’s pay packages in a vote later this month. filing With the SEC Show. Selipsky, who heads Amazon Web Services, earned nearly $81.5 million in 2021, mostly through five-year stock grants. Clark leads Amazon’s retail and logistics business and was paid $56 million last year.

The ISS and Glass Lewis recently urged shareholders to vote against the German pharmaceutical giant’s CEO pay package. Bayerand media companies discoveryAccording to a Bloomberg report.

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