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DJ Amazon's CEO Transition Won't Drastically Change Leadership -- ESG Insight

· 02/05/2021 06:27

Commentary by Stela Zarija, research analyst, ESG & impact investing

Amazon.com's Jeff Bezos is stepping down as chief executive to transition into an executive chairman role. Andy Jassy, Amazon Web Services' CEO, will succeed Bezos. The split between the chairman and CEO role is usually seen as a positive governance move as it allows the board to hold management accountable and keep the board independent if the executive chairman is brought in from outside. This won't be the case at Amazon. Executive chairs tend to be more engaged in the daily operations of a business and Bezos's influence won't necessarily decrease. Amazon's board reviews the company's CEO succession planning at least annually. In a sign of the forthcoming transition, Bezos promoted Jassy to CEO of Amazon's cloud-computing business in April 2016.

Write to Stela Zarija at stela.zarija@dowjones.com

ESG Insights are written by The Wall Street Journal's ESG research analysts, whose commentary is independent of the news coverage by reporters at the Journal.

(END) Dow Jones Newswires

February 05, 2021 06:27 ET (11:27 GMT)

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