Despite being one of the wealthiest people in the world, Amazon (NASDAQ:AMZN) founder and Chief Executive Officer Jeffrey Bezos earns a salary that some people may find lower than their own.
Bezos received approximately $1.68 million in total compensation for his work in 2012, but a staggering majority of that payment was for business travel and security arrangements at “business facilities,” according to a filing Amazon submitted to the U.S. Securities and Exchange Commission on Friday.
Of that compensation, Bezos salary amounted to only $81,840. He didn’t receive an offer for a raise and didn’t get any stock awards. He actually asked the company not to increase his compensation beyond what it was in 2011. Apparently, it is part of Amazon’s attempt to keep executive pay at a minimum in order to ensure they focus on building shareholder value by tying their pay to the task…
For Bezos, building shareholder value is more important than his pay check. After all, he is a shareholder himself. And, with 87 million shares, boosting the companies stock could easily outweigh any salary he could get from the company; his share is worth $23.5 billion dollars thanks to the stock’s quick growth in 2012. His fortune of $25 billion put him at twentieth place globally on the Bloomberg Billionaire Index despite the fact that he’s one of the lowest paid chief executive officers of big tech businesses.
This news should be a good sign for Amazon investors, as it points to not only the frugality of the company — not throwing too much money at its executives — but also highlights the company’s leadership. Bezos has a lot to gain from boosting the company’s share value, so it’s likely he will do what he can to make it happen for himself and for investors.