This Wednesday, during the shareholder meeting of Amazon, Bezos announced that he is stepping down on July 5 as the chief executive officer.
Jeff will pass on the mantle of CEO to Andy Jassy. Andy currently runs Amazon Web Services. Bezos has been running Amazon for over three decades which has made him one of the wealthiest people on the planet. Jeff will now be the executive chair of Amazon.
Why July 5?
Amazon announced during its earnings report in February that Andy will take over in the third quarter of this fiscal year. However, the exact date for this transition has been disclosed now. July 5 has been chosen as the transition date because Amazon’s incorporation date is July 5, 1994.
Jeff Bezos’s Future Plans
Bezos has shared that he is excited to work as the executive chair of Amazon. He is planning to focus his attention and divert his energies into early initiatives and new products. He is also looking forward to devoting his time to other ventures apart from Amazon like Blue Origin and Bezos Earth Fund.
Jeff believes Andy will make for an amazing leader. Jassy has been working at Amazon for 24 years and has risen through the ranks and is currently running a very profitable division.
Jeff believes Andy has amazing standards. He will not let Amazon become typical, he has an energy that will keep Amazon alive and special.
Andy will be replaced by Adam Selipsky who will now run AWS at Amazon. Adam was the CEO of Tableau. Andy is taking over a scrutinized and complex business as Amazon is going ahead with the purchase of MGM at $8.45 billion. The shareholder meeting also raised some problems which Andy will have to handle.
Shareholder Meeting of Amazon
All of the proposals introduced during the shareholder meeting were voted down. One of them was introducing a requirement to fulfill a certain number of hours at Amazon to work on the board of the company. The proposal was unsuccessful but it underscored all the lash out Amazon has seen over its worker treatment policies at warehouses. The criticism comes after a brilliant union drive in April at one of Amazon’s warehouses to unionize which failed because the company pushed back.
Jeff was asked in the meeting about the huge size of Amazon’s business. This question was asked because, on Tuesday, the District of Columbia had filed an anti-trust suit against Amazon saying that they were abusing their market dominance to harm their competition.
Bezos has responded to this by saying that they face a lot of competition from companies that are established. They face competition in every industry. Bezos believes retail is a healthy industry and is not a winner take all industry. Jeff talked about the new ventures Amazon is starting that will be managed by Andy such as Amazon Care, a telehealth service, and Project Kuiper, a satellite internet service.
Bezos believes these ventures may or may not work. They are huge investments and risks.