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Jeff Bezos became world’s richest man despite earning a ‘humble’ salary at Amazon—here’s how
- Jeff Bezos, the second richest person globally, has a modest salary of $80,000 per year as Amazon's founder. Despite this, his wealth is $241 billion. Here's how
Jeff Bezos was the world’s richest person until Elon Musk overtook him in October 2024. Bezos earned the top spot despite earning a ‘humble’ salary of just $80,000 per year as Amazon’s founder, which is approximately ₹67 lakh, according to The New York Times.
The average salary at Amazon in the United States varies depending on the role and can range from $32,421 to $591,639 per year, as per multiple reports.
If Bezos had earned $80,000 per year for 20 years, as he did during his time as Amazon’s CEO, he would have accumulated a total of $1.6 million. However, his current net worth is reported to be a staggering $241 billion.
Bezos' journey to billionaire status was largely driven by his Amazon stakes, not just his salary. According to Inc.com, Bezos earned $8 million every hour between 2023 and 2024.
‘Very proud of the decision…’
Since stepping down as Amazon's CEO, Jeff Bezos has been selling his company stock. Fortune reports that Bezos plans to sell 25 million shares by the end of 2025.
Jeff Bezos has also expressed pride in not receiving additional compensation from Amazon. He requested that the board’s compensation committee refrain from offering him any extra pay, saying that keeping his salary unchanged made him feel “very proud.” He added that accepting more compensation would have made him feel “icky".
“I had plenty of incentive,” Bezos said. “I owned more than 10 per cent of the company. I just felt, how could I possibly need more incentive?” said the Amazon founder, reported Inc.com.
The other side of low salaries
For billionaires, like Jeff Bezos, lower salaries also mean lower taxes. In both 2007 and 2011, Jeff Bezos paid no federal income taxes. The Amazon boss avoided federal taxes by reporting investment losses greater than his salary, Fortune reported, citing a 2021 Pro Publica review.
Jeff Bezos is not the only name when it comes to billionaires avoiding taxes. Others, such as Jensen Huang, Elon Musk, Warren Buffett, and Michael Bloomberg, have also taken advantage of similar tax laws.
The US estate tax system has contributed minimally to federal tax revenue since the early 2000s. According to the New York Times, if the tax had kept pace with the growth of the ultra-wealthy, it could have generated around $120 billion in 2023. However, the actual amount collected was only a fraction of that figure, as reported by the NYT.
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Business NewsNewsTrendsJeff Bezos became world’s richest man despite earning a ‘humble’ salary at Amazon—here’s how
First Published:16 Dec 2024, 04:51 PM IST
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