Who is The CEO of Amazon? What is this Amazon about?

Who is The CEO of Amazon? Andy Jassy is a very different CEO than his predecessor in a lot of ways. Obviously, Jeff Bezos was a unique personality in the world of tech CEOs, which makes him a difficult act to follow. Jassy has made his imprint on Amazon in ways that reflect his own unique perspective and leadership style.

A lot of the changes he has made have been tough decisions on issues that had built up over time. For example, Jassy has made cuts to streamline the company after years of spending on experiments that don’t return value to the organization. He also implemented layoffs for more than 27,000 employees.

Those changes have made a big difference in the company, but one of the biggest changes is actually something that you might have missed if you don’t pay attention to things like quarterly earnings reports. It turns out, however, that it’s a pretty big deal. Unlike Bezos, Jassy actually answers questions on the company’s earnings calls.

The CEO of Amazon

Who is The CEO of Amazon?

In 1994, Amazon founder Jeff Bezos launched one of the biggest success stories in modern business history. What began strictly as an online bookseller slowly evolved into a purveyor of hundreds of different product lines. That helped Amazon (AMZN) to grow into a global e-commerce and cloud computing giant, with a $1.8 trillion market capitalization value as of July 22, 2021.

Bezos is widely lauded as a visionary in e-commerce. But he owes much of his success to the management team that helped develop Amazon’s many silos and executed the company’s rapid growth.

Below, we sketch out the profiles of Amazon’s founder and six of the company’s top executives. We highlight the various roles they have held at Amazon, their contributions to the company, previous roles at other companies, and their educational backgrounds.

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Amazon CEO Jassy’s cost cuts deliver investors biggest profit beat

Amazon founder Jeff Bezos famously shunned Wall Street’s earnings obsession, claiming the customer was always more important.

While his successor, Andy Jassy, also talks plenty about serving customers, he’s been forced by investors to get serious about profitability. And his efforts are paying off.

Amazon
delighted investors on Thursday, posting earnings of 65 cents a share, blowing past estimates of 35 cents a share. The company’s stock surged almost 9% in extended trading.

The last time Amazon delivered an earnings beat that big was in February 2021, when profit for the fourth quarter of 2020 came in at $14.09 per share, almost double analyst projections. At the same time, the company surprised investors by announcing Bezos would step down as CEO.

Jassy closed out his second year at the helm in July. Under Jassy, Amazon has morphed into a leaner version of itself, as slowing sales and a challenging economy pushed the company to eschew the relentless growth of the Bezos years. Investors dialed up the pressure after watching the stock lose half its value in 2022.

Jassy pared back underperforming projects in riskier, newer verticals like health care and grocery, froze corporate hiring, and eliminated 27,000 jobs.

In Jassy’s prepared remarks at the start of Thursday’s earnings call, cost cuts were one of his central themes. He emphasized steps the company has taken to reduce expenses in its fulfillment system, such as moving from a national network to a “series of eight separate regions serving smaller geographic areas.”

“We keep a broad selection of inventory in each region, making it faster and less expensive to get these products to customers,” he said.

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Amazon said its core business of selling goods in North America earned $3.21 billion during the quarter, a reversal from the same period a year ago, when the segment lost $627 million.

The broad-based changes under Jassy have left the company less dependent on its cloud business, Amazon Web Services, for profits. AWS, which provides cloud infrastructure and a wide range of software services to businesses around the world, has often accounted for all, or almost all, of Amazon’s profit.

In the second quarter, Amazon was able to expand its overall margin while AWS’ profit margin declined to 24.2% from 29% a year earlier.

AWS beat revenue estimates in the quarter. But at only 12% year-over-year growth, the cloud business is seeing its slowest expansion since Amazon began breaking out its revenue in 2015.

Jassy wants investors to think about it in a different way. Last year, as economic concerns became the dominant theme in corporate America, companies were looking to reduce expenses, including finding ways to lower their cloud bills. Jassy says AWS helped them with their “optimization,” getting more productivity at lower costs.

That trend has continued, which Jassy says makes the cloud unit’s growth rate a rather impressive feat, given it’s already generating more than $20 billion in sales a quarter.

“To still grow double digits on a base that size means that we’re acquiring a lot of new customers and a lot of workloads,” Jassy said, near the end of the call. “I’m very bullish of the growth of AWS over the next several years.”

The CEO of Amazon

Amazon CEO pay: Andrew Jassy’s compensation plunges from $212 million to $1.3 million

Amazon.com CEO Andrew Jassy’s 2022 pay plunged to $1.3 million, a sharp drop from his compensation package of $212 million in the prior year.

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The pay cut means that Jassy, who stepped into the role in 2021, earned less than Amazon founder Jeff Bezos, who now serves as executive chair and earned $1.6 million last year, according to the company’s annual proxy statement filed Thursday.

Amazon is struggling with losses and a slowdown in sales, with last year’s financial performance representing “one [of] the worst financial years in its history,” according to GlobalData analyst Neil Saunders. Jassy is orchestrating thousands of job cuts to trim costs as shoppers pull back on spending amid high inflation and pinched budgets.

Jassy’s $1.3 million in compensation includes a salary of $317,500 and benefits such as 401(k) investments and security costs of $981,000, the proxy said.

“The [compensation committee] did not grant Mr. Jassy a periodic equity award in 2022, even though the Committee has typically granted periodic restricted stock unit awards to our executive officers in even-numbered years,” the regulatory filing noted.

The proxy noted that Jassy’s 2021 compensation package of $212 million included a large stock award, which will vest over 10 years and “is intended to represent most of Mr. Jassy’s compensation for the coming years.”

Because of previously granted stock awards, Jassy had stock vested worth $31.9 million in 2022 and which is considered part of his compensation, according to the filing.

However, the regulatory filing noted that because of the plunge in Amazon’s stock price, that stock grant is now worth “less than half of its grant date value as of the end of 2022.”

Still, it’s not as if Jassy is about to enter the poorhouse. Jassy owned about 2 million shares of Amazon.com as of February 2023, according to the proxy — stock that is worth about $203 million, based on Friday’s trading price.

The CEO of Amazon

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