- Amazon’s corporate employees are going to “pay” for the company’s problems due to the fall in the value of the shares.
- It is estimated that they will receive up to 50 percent less in relation to projected salary targets.
- How Amazon corporate employee pay is structured.
The sharp decline in Amazon shares throughout 2022 will not be free for the company’s corporate employees.
It is that the drop in the price of Amazon papers will impact the payment of employees who receive part of the annual bonus in relation to the value of these shares.
Amazon pays its workers a large portion of their annual salaries in share units, and a slump like last year will inevitably cause pay by 2023 to be 15 to 50 percent below average. projected objectives, publish the Wall Street Journal.
“Our annual compensation model is intended to encourage employees to think like owners, so it connects total compensation to the long-term performance of the company,” Amazon told the WSJ. “That model has advantages and risks from one year to the next because the price of the shares can vary; although historically Amazon stock has had very good long-term records,” he added.
How Amazon pays corporate workers
Amazon has always paid fewer annual bonuses than other tech companies, but it made up for that difference with highly profitable stocks.
The problem workers see is that the longer an employee has at the company, the more dependent they become on those stock-based compensation. In some cases, they make up 50 percent or more of total annual salaries for some.
Hence the importance of a sharp drop in the share price.
In 2022, Amazon’s shares are down more than 36 percent amid the general slump in technology and slower growth in the retail market.
When Amazon issues so-called “restricted” stock units to employees, it is based on the assumption that in the long run it will be very convenient, but when they fall, in the short term it creates problems.
Between 2016 and the beginning of 2022, Amazon’s share value rose an average of 31 percent per year. However, they are now trading around $95 a share and some worker pay packages are set up around $165 for shares.
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