- Amazon CEO Andrew Gacy’s $214 million package is overkill, two investor advisory firms say.
- They also say that CEO packages are “unrelated” to performance standards.
- They are urging shareholders to vote against these packages at this month’s annual meeting.
Amazon CEO Andy Gacy’s salary package is too high.
This is according to investor advisory firm Services to Institutional Shareholders (ISS). “The new CEO award value of $214 million is overstated in the context of an internal promotion,” the ISS wrote in a report shared with clients on Thursday. financial times mentioned.
The report continued, “The compensation program lacks any connection to objective and pre-determined performance standards.”
ISS is the world’s largest investor advisory firm. It provides recommendations to shareholders of listed companies on how to vote.
ISS joined another consulting firm in urging shareholders to vote against Amazon’s unreasonable pay packages. Last week, Glass Lewis said there was a disconnect “between pay and performance driven by one-time awards” in Amazon CEO pay packages, Bloomberg mentioned.
Both companies are proposing that shareholders vote to reject compensation packages for Amazon’s top leaders in a non-binding vote at the company’s annual meeting scheduled for May 25.
Gacy took over as Amazon CEO from Jeff Bezos in July. In 2021, Jassy received a total of $212,701,169 in total compensation, Insider mentioned In April, citing a proxy deposit The company provided. Only $175,000 of this came from his salary. The rest came from stock: He got 61,000 shares that would be vested over 10 years, worth $211,933,520, when he became CEO.
“The way the Securities and Exchange Commission (SEC) rules work, we are required to report that grant as total compensation for 2021, when in fact it will be awarded over the next 10 years,” an Amazon spokesperson told Insider in an emailed statement Friday. .
“What this means from an annual compensation perspective is that I’m competitive with CEOs at other large companies and has been approved by Amazon’s board of directors,” the spokesperson added.
Bezos, who has stepped down as CEO, received $1,681,840 in total compensation in 2021. He earned a base salary of $81,840, and provided $1.6 million in other forms of compensation with no stock compensation, per file.
Gacy isn’t the only Amazon CEO whose salary is being questioned. Contributors to Adam Selipsky and Dave Clark’s salary packages are also expected to consider a vote later this month, Amazon’s deposit With SEC offers. Selipsky, who heads Amazon Web Services, made nearly $81.5 million in 2021, most of it in a five-year stock grant. Clark leads Amazon’s retail and logistics business, and earned $56 million last year.