Jeff Bezos, the founder and former CEO of Amazon, is one of the wealthiest people in the world. However, when it comes to his salary, it is not as straightforward as one might expect. This is because Bezos has consistently received a salary of $81,840 per year since 1998, the year that Amazon went public.
It is worth noting that this figure is significantly lower than the median CEO salary for a company of Amazon’s size, which is around $12.7 million. In fact, Bezos’ salary is so low that it is below the minimum wage in some parts of the United States.
However, it is important to understand that Bezos’ net worth is not solely derived from his salary. In fact, his salary is just a small fraction of his overall wealth, which is primarily tied to his ownership of Amazon stock. As of 2021, Bezos owns around 10% of Amazon’s outstanding shares, which is worth around $179 billion.
In addition to his salary and stock ownership, Bezos has also earned income from other sources. For example, he has earned money through his investments in other companies, including Blue Origin (a space exploration company) and The Washington Post (a newspaper).
It is also worth noting that Bezos’ salary has remained unchanged for many years, even as Amazon’s revenue and market capitalization have grown significantly. This is largely due to Bezos’ philosophy on executive compensation, which is to focus on long-term growth and value creation rather than short-term financial performance.
Bezos has stated that he believes that a low salary for executives helps to align their interests with those of the company’s shareholders. By keeping his salary low, he is incentivized to create long-term value for Amazon and its shareholders, rather than focusing on short-term gains.
Another factor that has contributed to Bezos’ low salary is the fact that he has chosen to reinvest a significant portion of his wealth back into Amazon. For example, he has invested billions of dollars into initiatives such as Amazon Web Services and Alexa, which have helped to drive the company’s growth and profitability.
Despite his relatively low salary, Bezos’ net worth has continued to grow rapidly in recent years, due in large part to Amazon’s success. In fact, his net worth has increased by over $100 billion since the beginning of 2020 alone, largely due to the surge in demand for online shopping and cloud computing services during the COVID-19 pandemic.
It is also worth noting that Bezos’ salary is likely to change now that he has stepped down as CEO of Amazon. In 2021, he transitioned to the role of executive chairman, which means that he will still be involved in the company’s strategic direction but will no longer be responsible for day-to-day operations.
Under Bezos’ successor, Andy Jassy, Amazon is likely to adopt a new approach to executive compensation. Jassy has stated that he plans to focus on creating value for all of Amazon’s stakeholders, including employees, customers, and shareholders, and has indicated that he will be open to new approaches to compensation.
Overall, while Jeff Bezos’ salary is relatively low compared to other CEOs, it is just one small piece of his overall wealth. Bezos’ net worth is primarily derived from his ownership of Amazon stock, as well as his investments in other companies. His philosophy on executive compensation has been to focus on long-term growth and value creation, rather than short-term financial performance. With his transition to the role of executive chairman, it remains to be seen how Bezos’ compensation will change in the coming years.