Andy Jassy's pay package is too high.
The new CEO's $214 million award is excessive in the context of an internal promotion, according to a report shared with clients on Thursday.
The compensation program does not have a connection to the pre-set performance criteria.
The world's largest investor advisory firm is called ISS. Recommendations are given to shareholders on how to vote.
The advisory firm urged shareholders to vote against the pay packages. Last week, Glass Lewis said there was a discrepancy between pay and performance in top Amazon executives.
Both firms are suggesting that shareholders vote to reject Amazon's top leaders' compensation packages in a non-binding vote at the company's annual meeting scheduled for May 25.
Jassy took over as the CEO of Amazon in July. Jassy received $212,701,169 in total compensation in the year 2021, according to a proxy filing. His salary was only $175,000. When he became CEO, he was given 61,000 shares that would vest over 10 years, worth $211,933,520.
The way the SEC rules work we are required to report that grant as total compensation for 2021, when in reality it will vest over the next 10 years.
The compensation was approved by the Amazon Board of Directors and is competitive with that of CEOs at other large companies.
In the year 2021, Bezos received a total compensation of more than one million dollars. He made $1.6 million in other forms of compensation with no stock awards and earned a base salary of $81,840.
Jassy is not the only Amazon executive who has their salary called into question. The shareholders are expected to consider the pay packages of Selipsky and Clark in the vote later this month, according to the SEC filing. Most of Selipsky's $81 million in salary was in a five-year stock grant. Clark was paid $56 million last year.
According to reports, both Glass Lewis and ISS have urged shareholders to vote against CEO pay packages at Discovery and Bayer.
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