1️⃣ Overview of the issue
Every year, Amazon employees anticipate updates on their compensation, which is intricately tied to equity-based remuneration. However, internal Slack messages have revealed a wave of dissatisfaction among them, with some predicting up to 20% cuts in their future total compensation, notably in discussions tagged 'pay equity'.
2️⃣ Employee reactions and projections
"I was surprised to see my projected total compensation for 2025 in my 2024 PCS is about 10% less than my projected total compensation for 2024 in my 2023 PCS. Why would that happen," queried one employee in a dedicated Slack channel. This reflects a broader unease regarding the stability and predictability of Amazon's compensation system.
3️⃣ Company's stance and the reality of stock impact
Amazon's spokesperson, Margaret Callahan, clarified that there has been no shift in the company's compensation approach, attributing changes to job type, location, and performance factors. She noted, "Due to the growth in Amazon's stock price over the past year (approximately 77%), many employees' compensation in 2024 will meaningfully exceed the amount that the company planned for them to earn."
4️⃣ The bigger picture
These discussions come at a time when Amazon's stock has shown significant volatility, impacting the actual compensation employees receive versus their projections. The fluctuations illustrate the challenges of relying heavily on stock-based compensation in a dynamic market environment.
Will Amazon adjust its compensation strategy?
