Jeff Spicer
Amazon Executive Chairman Jeff Bezos has taken a significant step that could see him divest up to 50 million shares of the tech giant before early next year, as revealed by the company’s latest annual report.
The disclosed plan, unveiled in Amazon’s 2023 annual report, falls under the SEC’s rule 10b5-1(c) and enables Bezos to sell up to 50 million shares before Jan. 31, 2025, contingent on specific conditions. Bezos, a co-founder of Amazon in 1994, currently holds an approximate 10% stake in the company, equivalent to roughly 990 million shares, according to a 2023 filing with the Securities and Exchange Commission.
Rule 10b5-1(c) has historical significance as it was instated in 2000 as part of a broader effort to combat insider trading.
At the current market valuation, the sale of 50 million shares would net Bezos about $8.6 billion. His total net worth is estimated to be around $185 billion, positioning him as the world’s third-richest individual according to Bloomberg’s Billionaire’s Index, with only LVMH founder, chairman, and CEO Bernard Arnault and Tesla CEO Elon Musk surpassing him in wealth.
While Bezos hasn’t sold any Amazon shares since 2021, he did make a notable purchase of a single share on May 25, 2023.
Amazon’s annual report also divulged the trading plans of several other executives, including Chief Executive Andy Jassy and Chief Financial Officer Brian Olsavsky.
Jassy’s plan allows him to sell up to 190,000 shares before Dec. 31, 2024, whereas Olsavsky’s plan permits the divestment of 31,400 shares before May 28.
Notably, shares of Seattle-based Amazon experienced a noteworthy 7.9% surge in mid-afternoon trading on Friday subsequent to the release of the tech giant’s fourth-quarter results and guidance, which exceeded Wall Street’s expectations.
