“It’s like winning the prize for the race before the race is won.”Īmazon plans to stop its prior biannual stock grants to Jassy, aiming for the latest award to account for most of his compensation in the coming years, a person familiar with the matter said. “It is rewarding compensation a little prematurely,” Coffee said. Coffee Jr., director of the Center on Corporate Governance at Columbia Law School. Stock grants can be more appropriate for startups than for established companies like Amazon, said John C. Some governance experts have criticized such pay schemes because they reward executives irrespective of whether they achieve corporate milestones. Apple Inc's Tim Cook had $281.9 million in the stock vest, according to its 2021 proxy.
Microsoft Corp's Satya Nadella had $215 million in the stock vest for the fiscal year ended June 30, 2020, on top of a base salary of $2.5 million, for instance. It seems as though Andy Jassy is getting set up for success and will do well if he remembers to honor Bezos’ legacy in word and deed, build on what’s working with just the right posture, and deliberately think through and implement his own, personal 100-Day Action Plan.Ĭlick here for a list of my Forbes articles (of which this is #686) and a summary of my book on executive onboarding: The New Leader’s 100-Day Action Plan.Jassy's vested equity was still smaller than payouts to rival CEOs in the technology industry. It’s always about pausing to accelerate and then converging into the team before evolving it with four steps: The basics of executive onboarding always apply. Accelerate team progress after your start by evolving the strategies first, and then operations and organization.Even if you aren’t familiar with AWS, you should recognize some of its customers: Netflix, Twitter, ESPN, etc. Take control of your own transition, especially around deciding what to keep the same and what to change. Jassy made a name of his own when he headed one of the company’s most important revenue streams, Amazon Web Services (AWS).Prepare in advance, especially around securing the resources and support you’ll need going forward.Given these, Jassy and you in similar circumstances need to manage the context you inherit as much as possible, take control of your own transition, and accelerate team progress after you start. And witness Bob Swan’s failure at Intel.ĭeliberately think through and implement your own, personal 100-Day Action PlanĪs I said in my first article for this publication, almost exactly ten years ago, In general, when leaders are promoted from within like Larry Page at Google, they need to keep in mind that they cannot control the context, cannot make a clean break, and have no honeymoon. Witness previously successful CEO Jim Hackett’s failure at Ford.
Witness Jeff Immelt’s value destruction at GE.
People like Steve Balmer at Microsoft got this right, building on Gate’s legacy while evolving the company. Their #1 question is always “How does this affect me?” Jassy is currently CEO of Amazon Web Services, the e-commerce giant’s lucrative cloud storage arm, which accounted for 67 of the entire company’s operating profit last quarter. Consciously or unconsciously, people know this and know you’re going to make changes. “Presume not that I am the thing I was For God doth know, so shall the world perceive, That I have turn'd away my former self So will I those that kept me company.” - Shakespeare, Henry IV part 2 Act V Scene Vīecoming CEO changes you and changes your relationships – even if you’ve been at the organization for 24 years as Jassy has. The CEO (Jassy) taking the lead on running the company, across its:īuild on that strong base to move forward – with just the right posture
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