13. April 2017
Source: The Wall Street Journal
In a shareholder letter, Mr. Bezos stressed the importance of putting customers first and staying nimble
Amazon.com CEO Jeff Bezos earned a base salary of $81,840 last year, and because of his large stake in the company, has never taken stock-based compensation.
Amazon.com Inc. Chief Executive Jeff Bezos says he recently thought a new show the Amazon Studios team was considering was too boring and complicated to produce. But he gave it the green light anyway because the team thought it had potential.
Mr. Bezos told his team, “I disagree and commit and hope it becomes the most watched thing we’ve ever made,” he wrote in a shareholder letter published Wednesday. “Consider how much slower this decision cycle would have been if the team had actually had to convince me rather than simply get my commitment.”
The letter, an annual exercise, offers a window into Mr. Bezos’s management philosophy, describing how he can disagree with employees but still back their projects, as well as his opposition to relying on market research and other core company tenets.
Amazon also released data on compensation, which showed Andy Jassy, who runs the Amazon Web Services cloud division, was the top earner at $35.6 million last year, including stock awards. Read the rest of this entry »
16. November 2013
Source: The Wall Street Journal
Jeff Bezos, CEO of Amazon
Let me ask you to do something scary: Imagine you’re Jeff Bezos and you’ve just spent the morning studying your retail empire. How do you feel? Do you brim with confidence? Or do you harbor profound, unshakable paranoia about the rivals storming your gates?
I’m betting you’re paranoid. Indeed, I suspect your paranoia explains the frenzy of expansion that has gripped Amazon.com Inc. over the past few years, from its new effort to launch Sunday delivery to its move into grocery service to providing instant, face-to-face technical support on the Kindle Fire.
What could Mr. Bezos possibly have to fear? Impermanence. Mr. Bezos is in an industry, retail sales, in which every innovation is instantly pored over and copied, in which (thanks partly to him) margins are constantly driven to zero, and in which customers are governed by passing fancy and whim. Being online confers fantastic advantages to Amazon, but it also comes at a deep cost: Very little about its business is burned into customers’ minds.
Hence, frenzy: Amazon is in a race to embed itself into the fabric of world-wide commerce in a way that would make it indispensable to everyone’s shopping habits—and to do so before its rivals wise up to its plans. Read the rest of this entry »
9. January 2013
An Amazon.com fulfillment center in Ridgmont, U.K.
January in retail is a little bit like the off-season of a professional sports league. Teams dust themselves off from the grueling holiday season playoffs, evaluate their coaching staffs, and assess the balance of power in their divisions. In this month’s period of exhausted self-reflection, one of the industry’s broad conclusions is clear: Amazon.com is on its way to establishing a dangerous dynasty.
Amazon recently said it had its best holiday season ever in 2012, selling 26.5 million products around the world at a record-breaking pace of 306 items per second. Earlier this week, Amazon stock hit an all-time high, buoyed by a Morgan Stanley report that predicted the global e-commerce market will hit $1 trillion by 2016, with Amazon poised to capture nearly a quarter of that. The company is madly adding such customer freebies as new movies and television shows to its Netflix -slaying Prime Instant Video program, and its commitment to having the lowest price anywhere is increasingly exerting a gravitational effect on the strategies of rivals.
On Tuesday, Target announced a new policy of matching competitors’ prices year-round—a tactic geared toward slowing the emergence of “showrooming,” the practice by which shoppers browse in a store and then buy online, often from Amazon. Target, whose stock is also near an all-time high, is the second-largest retailer in the country, behind Wal-Mart. But if current growth rates continue, it will soon lose that title to the upstart from Seattle. Read the rest of this entry »
17. November 2012
He’s a pro-customer, tightfisted risk-taker who is conditioning Wall Street to embrace his erratic earnings. If you’re running a business with high margins — watch out.
FORTUNE — Jeff Bezos likes to read. That’s a dog-bites-man revelation if ever there was one, considering that Bezos is the cerebral founder and chief executive of a $100 billion empire built on books. More revealing is that the Amazon CEO’s fondness for the written word drives one of his primary, and peculiar, tools for managing his company: Meetings of his “S-team” of senior executives begin with participants quietly absorbing the written word. Specifically, before any discussion begins, members of the team — including Bezos — consume six-page printed memos in total silence for as long as 30 minutes. (Yes, the e-ink purveyor prefers paper. Ironic, no?) They scribble notes in the margins while the authors of the memos wait for Bezos and his minions to finish reading.
Amazon executives call these documents “narratives,” and even Bezos realizes that for the uninitiated — and fans of the PowerPoint presentation — the process is a bit odd. “For new employees, it’s a strange initial experience,” he tells Fortune. “They’re just not accustomed to sitting silently in a room and doing study hall with a bunch of executives.” Bezos says the act of communal reading guarantees the group’s undivided attention. Writing a memo is an even more important skill to master. “Full sentences are harder to write,” he says. “They have verbs. The paragraphs have topic sentences. There is no way to write a six-page, narratively structured memo and not have clear thinking.”
Jeff Bezos has always done things his own way, whether he’s ignoring Wall Street’s pleas for consistent earnings growth or requiring his top people to construct artfully written missives or launching seemingly disparate businesses — all at razor-thin margins. Only there’s nothing random about Bezos’s strategy. Indeed, like the memos he makes his managers write, his moves are driven by clear thinking and a cohesive vision, even if it takes a while for rivals to figure out Amazon’s motives — at which point it may be too late. Read the rest of this entry »