Amazon told employees it was increasing its base cash compensation cap to $350,000, more than double the previous amount, citing “a particularly competitive job market,” according to an internal announcement seen by the New York. Times.
Amazon previously capped its salary for technology and enterprise employees at $160,000 in most parts of the United States, favoring equity compensation that vests over several years for the remainder of an employee’s compensation. . Despite strong earnings reports last week, Amazon shares have fallen more than 4% over the past year.
The company did not say whether the increase in cash compensation would be associated with a decline in stock awards. He told employees he was increasing overall pay ranges for “most jobs around the world, and the increases are much larger than we’ve had in the past.”
The pay increases were only for corporate and tech workers, not the hourly workers who power Amazon’s operations. These employees earn an average of about $18 per hour.
Amazon confirmed the rating but declined to comment further.
Amazon has seen a wave of departures at its senior levels, where compensation is heavily weighted in equities. His cash salary cap was far below that of other big tech employees and a source of frustration for his workers.
The pay changes come in the first cycle of annual pay reviews since Andy Jassy became chief executive last summer. He previously ran Amazon’s cloud computing division, which fiercely competed with other tech companies for talent.
The announcement was first reported by GeekWire, a Seattle-based tech news site.
Amazon has increased its workforce by more than 300,000 people over the past year and now has more than 1.6 million employees.