Shulou(Shulou.com)11/24 Report--

According to the news on February 21, as Amazon's share price fell sharply, so did the salary of Amazon employees.

Amazon shares have fallen 36.30% in the past year as u.s. stocks closed on February 17. The continued decline in the share price has affected the retail giant's stock-focused compensation plan. In the face of fluctuations in the capital markets, Amazon employees' target compensation is 15% to 50% lower than expected, because a large part of the salary is restricted stock issued by the company.

"the purpose of our compensation model is to encourage employees to think like business owners, which is why total compensation is tied to the company's long-term performance," an Amazon spokesman said in an emailed statement. " This model has some upward space every year, but also brings some risk, because the stock price has been fluctuating. But judging from Amazon's historical data, this model applies to employees who focus on the company's long-term development. "

Amazon's basic pay to employees has been lower than that of large technology companies over the years, but the company will close the income gap through stock incentives over several years. Amazon employees say that the longer they work at the company, the higher the share of stock incentives in compensation. For some Amazon employees, stocks can even account for 50% or more of total revenue.

Over the past year, Amazon's retail business has slowed due to a slowdown in the overall growth of the technology industry, with the company's share price down 36%. People familiar with the matter said Amazon issued restricted shares to its employees on the assumption that the company's share price would rise by at least 15 per cent a year.

Until recently, this assumption was largely correct. Between 2017 and early 2022, Amazon's share price rose by an average of about 30% a year. But some people familiar with the matter say Amazon's share price is now about $97, but some employees are paid on the assumption that Amazon's share price is about $170 a share.

According to the company's internal data, due to the decline in performance, Amazon's human resources team recently sent training documents to managers on how to effectively communicate with employees about pay reduction. According to these materials, managers should focus on employees who invest in the company's long-term performance and hold restricted stock for longer until the company's share price picks up.

Andy Jassy, Amazon's chief executive, spoke about the situation at a recent staff meeting at Amazon's Seattle headquarters, according to minutes of an Amazon meeting. "I know this is a very difficult time," he said. our economic situation is so uncertain that we have just had to say goodbye to our 18000 colleagues and the market situation is very bad. " The share prices of Amazon and other companies have been affected, Jassi added. "the result is that pay is affected, which is very difficult." all of this is difficult. but I am very optimistic that we have the opportunity to come out of a challenging period, when the position of the company will be stronger than when we entered this period. "

Last year, Amazon raised the cash cap on employee compensation from $160000 to $350000 after competing with its tech peers for talent and the company's share price was falling. Amazon plans to give its employees a 1% to 4% raise this year, according to some people familiar with the matter. Some people familiar with the matter say the company will not issue more restricted shares to employees to help meet this year's compensation targets.

Amazon is in a bad financial position right now. In November, the company launched its largest-ever round of layoffs because Amazon has been hiring heavily over the years and is now grappling with weak retail demand. By January, Amazon had laid off 18000 employees, making it the technology company with the largest number of layoffs in the latest wave of layoffs.

In addition to abolishing existing positions at the company, Amazon has cancelled job offers that have been issued to job seekers and delayed the launch of some campus recruitment activities by six months.

"as part of our annual business plan review process, we have made difficult decisions given the challenging overall economic situation," an Amazon spokesman said in a statement. some business positions where job offers have been issued but job seekers have not yet arrived have been cancelled and some school recruitment activities have been postponed for up to six months. "

Amazon also recently announced a plan to require employees to work in the office for at least three days a week from May 1 this year, changing the established policy of letting team leaders decide how much time they spend in the office.

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