Jassy has been granted 61,000 shares of Amazon common stock as of July 5, when he takes over the helm from founder Jeff Bezos. The stock awards will vest over the next 10 years, the company disclosed Friday in a Securities and Exchange Commission filing. Amazon shares closed Friday at $3510.98.
Jassy was named as Bezos’ successor as CEO in February. As of next week, Bezos will shift to executive chairman of the e-commerce and web services giant that he founded in 1994. Jassy is an Amazon veteran who signed on in 1997, the year the company went public. He helped form the company’s profitable Amazon Web Services division in 2003; he’s served as CEO of the unit since 2016.
In 2020, Jassy’s total compensation from Amazon was $35.8 million, most of which came from a $35.6 million stock award. SEC rules require that executive compensation tallies include the total value of the stock at the share price on the day of the grant, even though shares typically are not immediately available as liquid capital and vest over years.
Jassy’s elevation marks a new chapter for the corporate behemoth with an astounding market cap of $1.7 trillion. Jassy’s star has been tied to the AWS cloud-computing division, which has become Amazon’s most profitable business segment. For the full year 2020, AWS pulled in net sales of $45.3 billion, up 30% on an already massive revenue base. It also delivered an operating margin of 30%, compared with operating margin of 5.9% for the company overall.
Amazon’s corporate transition also comes as Bezos turns his eye toward intergalactic pursuits through his Blue Origin space exploration firm. Bezos is set to take part in the company’s first space flight, set for July 20 via the New Shepard spacecraft named in honor of legendary Mercury astroanut Alan Shepard, who was the first American to ride a rocket outside of Earth’s atmosphere and into space in May 1961.