Amazon Halts Base Pay Raises For Several Senior Staff

Amazon has reportedly opted against raising base pay for numerous senior employees this year. This decision stems from a substantial surge in Amazon's stock prices, which have surged by over 75 per cent in the past year. While the increase in stock prices typically results in higher overall earnings for employees due to the significant role stock plays in their compensation, it also gives Amazon reason to refrain from increasing cash-based salaries.

Internal guidelines have been circulated to managers to address potential inquiries from employees regarding the decision not to increase base pay. These guidelines, outlined in a Q&A document obtained by Business Insider, instruct managers to attribute the lack of pay raises to the notable increase in Amazon's stock price, which has caused many employees' total compensation to surpass the predefined pay range for their positions.

This adjustment reflects Amazon's distinctive pay structure, which has long been a source of debate among employees.