Amazon has reportedly made the decision not to give base pay increases to many senior employees this year, citing a significant surge in the company's stock price. The decision comes as Amazon's stock prices have risen by over 75% in the past year, leading to a substantial increase in overall compensation for many employees due to their stock holdings.
Internal guidelines distributed to managers outline the rationale behind the decision, instructing them to address employee inquiries by highlighting the impact of the stock price surge on total compensation. According to these guidelines, many employees' compensation now exceeds the predefined pay range for their positions, primarily due to the increase in stock prices, reported Business Insider.
Earlier this year, Amazon faced criticism for its stringent return-to-office policy, with reports suggesting that employees failing to comply could see lower performance ratings and blocked promotions.
Some employees raised concerns that the policy was part of a larger strategy to encourage voluntary departures, thereby helping the company cut costs without resorting to outright terminations.
Responding to these allegations, an Amazon spokesperson reiterated the importance of compliance with company guidelines and policies in determining employees' readiness for promotion. They emphasized that promotions are one of the many ways Amazon supports employees' growth and development, as reported by Business Insider.