Amazon revealed on Wednesday that its senior employees, whose compensation predominantly comprises stock-related awards, will not get a cash pay raise this year.
Amazon Will Not Impose Pay Increases for Senior Employees
According to Reuters, an Amazon spokesperson said that for this year, the company prioritizes cash base pay increases for employees "whose compensation is weighted more heavily in base pay as opposed to stock."
While some top employees will not see a cash raise, the spokesperson noted that their overall compensation could increase significantly compared to last year due to Amazon's stock price growth.
The surge in Amazon's stock price has been substantial, with an 81% increase in 2023 and an additional climb of over 18% so far this year.
However, despite this strong performance, Amazon started the year with job cuts across various divisions, laying off over 27,000 jobs and reducing stock awards last year.
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Amazon Informing Senior Employees
According to Fortune, the first to report on the pay raise matter, Amazon's compensation staff have started notifying senior managers and other senior leaders about the changes and explaining this year's policy.
Amazon spokesperson Margaret Callahan told Fortune that the company believes senior employees have already benefited from Amazon's share price increase of about 80% over the past year.
"Due to the growth in Amazon's stock price over the past year (approximately 77%), many employees' compensation will meaningfully exceed the amount that the company planned for them to earn when we set compensation last year and in prior years' compensation cycles," Callahan told the outlet.
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