Bezos successor Andy Jassy: Despite Amazon shares, still far from billionaire status | 02/14/21

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 The  news last week was a blast: Amazon boss Jeff Bezos is stepping down from his position as CEO and leaving Andy Jassy, ​​the previous head of Amazon Web Services. But even though Jassy has been with Amazon since 1997 – and thus almost as long as himself, according to founder Bezos – there are still worlds between the fortunes of the current and future Amazon CEOs.

• AWS-Chef Andy Jassy löst Jeff Bezos in the third quarter of 2021 as Amazon CEO
• Bezos much richer than Iassy
• Distribution of Amazon shares cause wealth gapAndy Jassy will be the new Amazon boss in the third quarter of 2021. While the news of the – at least partial – withdrawal of Jeff Bezos caused some astonishment at the online retailer, the choice of his successor did not surprise experts. Andy Jassy joined the company in 1997, just three years after the founding of Amazon, as one of the first 300 employees and, according to “Forbes”, developed the idea for the successful cloud division AWS, which he did under his From 2003, management gradually expanded to become the highest-income division of the tech group. According to the “BBC”, he recognized the enormous potential of the cloud even before the actual tech companies Microsoft and Google and ensured that Amazon is now the world market leader in this area. Around 60 percent of Amazon’s operating profit now comes from the cloud division. In 2020 alone, the division generated sales of 45 billion US dollars, 30 percent more than in the previous year.

Andy Jassy’s fortune surprisingly small

With the move to the top of the group, Jassy now receives the reward for his success with Amazon’s cloud division. But even though Amazon already owes a large part of the company’s profits to its AWS boss, its fortune is surprisingly small – especially when you compare it to that of his supervisor Jeff Bezos. Because according to the “Bloomberg Billionairs Index” Jeff Bezos is currently the second richest person in the world with a fortune of 195 billion US dollars – behind Tesla boss Elon Musk – and this wealth is mainly due to the business development of Amazon and the associated strong stock performance, Jassy only comes to a fortune of around 440 million US dollars, according to “Forbes”. He’s been with Amazon for more than 20 years – most of the time in a management position – and, according to Forbes, owns more shares in the online retailer than any other employee – with the exception of founder Bezos, of course.

But that is obviously also the reason why, apart from the Amazon boss, no other employee of the online giant has made it into the billionaires club. Because Jeff Bezos makes sure that he himself remains by far the largest shareholder in Amazon. According to Forbes, he currently owns 53 million shares, which corresponds to 11 percent of Amazon. According to estimates, his successor Andy Jassy “only” has 81,500 Amazon shares, currently valued at around 273 million US dollars (as of: closing prices on February 5). So there is still a long way to go before he reaches billionaire status.

In addition to Bezos, according to Forbes, only one other person is known who came to a fortune of more than one billion US dollars through Amazon: Bezos ex-wife MacKenzie Scott. She had married Jeff Bezos in 1993, a year before Amazon started, and received roughly 19.7 million Amazon shares upon their divorce in 2019. That was equivalent to around a quarter of the online trader’s shares that Jeff Bezos held at the time.

Billionaire status unattainable even as a top employee?

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 The  wealth comparison between Jeff Bezos and Andy Jassy shows how difficult it is to build up a huge fortune without owning large company stakes, which you basically only get as a founding member of a company. This obviously also applies when it comes to one of the most valuable companies in the world. Because even with his salary, which according to “Forbes” in 2019 was 349,000 US dollars, Andy Jassy can hardly hope to increase his fortune significantly. According to information from “Wallmine”, other Amazon employees such as Jeffrey Blackburn currently earn even more than him. But even Blackburn, who acts as Senior Vice President of Business Development and Digital Entertainment and has already been responsible for the Prime Video, Amazon Studios, Amazon Music and Amazon Advertising divisions during his career, only has a fortune of 345, according to Forbes Million dollars. This also includes the value of its approximately 67,000 Amazon shares. Even Amazon’s consumer chief Jeffrey Wilke, who was long considered number two after Bezos, owns only around 49,000 Amazon shares and total assets of 400 million US dollars, according to Forbes.

Andy Jassy’s salary is likely to change with his new position, but it is not known whether he will receive another large block of shares. According to “Express”, there was a year in the past in which Jassy earned more than Jeff Bezos thanks to stock awards received – in 2016, after Amazon Web Services made around 12.2 billion US dollars in profits, setting a new record. Jassy then apparently directly sold some of his shares: For example, he sold 14,000 Amazon shares in 2016 for a total of 11 million US dollars, as “Wallmine” reported, citing SEC documents. Today, that block of shares would be worth around $ 47 million. On the way to the first billion – or even to a fortune similar to that of Jeff Bezos – that would have been just a drop in the ocean for Jassy.

Finanzen.at editors





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Bezos successor Andy Jassy Amazon shares billionaire status

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