Who is Jonathan Rubinstein and why was he appointed to the board?

Jonathan Rubinstein has been elected to Amazon's Board of Directors. He brings significant experience from his role as Senior Vice President and General Manager of the Palm Global Business Unit at Hewlett-Packard. While the filing doesn't detail the specific reasons for his appointment, it typically signifies a strengthening of the board's expertise, potentially in areas related to technology, strategy, or operations.

What compensation is Mr. Rubinstein receiving for joining the board?

Mr. Rubinstein has been granted 5,000 restricted stock units (RSUs) of Amazon common stock. These RSUs will vest in three equal installments over his first three years as a director, provided he continues to serve in that capacity. This aligns his compensation with the long-term success of the company.

Does Mr. Rubinstein have any special agreements with Amazon?

Yes, Mr. Rubinstein has entered into an indemnification agreement with Amazon. This is a standard agreement for directors, designed to protect them from potential liabilities arising from their service to the company.

What is the significance of this 8-K filing for investors?

This 8-K filing is significant as it informs investors about changes in the company's leadership and governance. The addition of a new director, especially one with experience from a major technology company like Hewlett-Packard, can be viewed positively. The RSU grant also provides insight into how Amazon compensates its non-employee directors, emphasizing long-term shareholding.

AMZN 8-K: Leadership Changes

Summary

Amazon.com, Inc. (AMZN) filed an 8-K on December 16, 2010, announcing the election of Jonathan Rubinstein to its Board of Directors. Mr. Rubinstein, who brings experience from his role as Senior Vice President and General Manager of the Palm Global Business Unit at Hewlett-Packard, will serve as an independent director. His appointment is effective as of December 15, 2010. In connection with his election, Mr. Rubinstein received a restricted stock unit award for 5,000 shares of common stock, which will vest over three years. He also entered into a standard indemnification agreement with the company. This filing provides transparency regarding the composition of Amazon's board and executive compensation practices.

Key Highlights

1Jonathan Rubinstein elected as a director to Amazon.com, Inc.'s Board of Directors.
2Mr. Rubinstein's appointment is effective December 15, 2010.
3He currently holds the position of Senior Vice President and General Manager of the Palm Global Business Unit at Hewlett-Packard.
4Mr. Rubinstein was granted 5,000 restricted stock units (RSUs) under the Company’s 1997 Stock Incentive Plan.
5The RSUs are subject to a three-year vesting schedule, with equal installments vesting annually.
6Mr. Rubinstein has entered into a standard indemnification agreement with Amazon.
7The filing signifies a change in board composition and executive compensation arrangements.

AMAZON COM INC 8-K Report, Executive Changes (Dec 17, 2010)

Summary

Key Highlights

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