By an internal official statement seen by The New York Times, Amazon has increased the maximum on basic cash compensation for corporate employees to $350,000, almost as much as doubling the earlier amount, citing “a very competitive labor market.” Reports euronews.com
The e-commerce behemoth will raise the total salary range for most occupations around the world, with the hikes being far more “substantial” than in the past, according to the business.According to the message, “this entire year has seen a hugely competitive labor market,” there was a “need for us to maintain a competitive advantage for attracting and maintaining top people.”
In most locations of the USA, Amazon traditionally capped salary for technical and corporate staff at $160,000, preferring stock remuneration that vests over many years for the remainder of an employee’s pay package. Despite reporting solid results last week, Amazon’s stock has dropped more than 4% in the last year.
The business did not specify if the higher cash incentive would be supported by a reduction in stock awards. It informed staff that it was raising total salary ranges for “most jobs internationally, and the hikes are substantially more significant than we have previously done.”
Pay Scale eligibility
The pay raises were only for paid business and tech employees, not for the hourly employees who keep Amazon running. These workers make around $18 an hour on average. The note was confirmed by Amazon, but the company refused to comment further.
Amazon has had a spate of senior-level departures, where stock compensation is disproportionately weighted. Its cash wage structure was far fairly low than those of other large technology personnel, causing dissatisfaction among its staff.
The wage adjustments occur during Andy Jassy’s first annual wage review cycle since taking over as CEO last summer. He formerly managed Amazon’s cloud computing branch, which faced stiff competition for talent from other internet firms. Almost the last year, Amazon has added more than 300,000 employees, bringing its total workforce to over 1.6 million.
Amazon will examine newly promoted employees’ salaries at the time of career advancement and, if necessary, provide in-year stock awards to bring them within the new pay range.