Tags: amazon | workers | pay | raise

Amazon Workers' Pay Raise Costs Stock Options, Bonuses

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A pay raise given to Amazon's hourly workers was muted by the loss of stock options and bonuses. (Jonathan Weiss/Dreamstime.com)

By    |   Wednesday, 10 October 2018 09:42 AM

Amazon hourly workers received a dramatic pay rise last week, but it could cost them thousands of dollars a year in loss of stock options and monthly bonuses, The New York Times reported.

The company's senior vice president, Dave Clark, announced that employees would receive a pay rise that puts their minimum wage at $15 an hour.

He posted video footage of the announcement, which had staff members cheering ecstatically.

However, not all Amazon workers feel the pay rise is fair as they will no longer be eligible for monthly bonuses and extra incentives.

Amazon confirmed this in a statement to CNBC but noted that the wage increase compensates for any loss in other benefits.

"The significant increase in hourly cash wages more than compensates for the phase out of incentive pay and [restrictive stock units]," a spokesperson said adding that, because the compensation is no longer incentive-based, it would be "more immediate and predictable."

However, as The New York Times noted, the dispute could come down to accounting rules.

Amazon announced that if employees in 2018 used their stock options granted two years ago, it would be considered as compensation this year, but employees argue that it was compensation for work they had performed two years ago.

Senator Bernie Sanders, who has previously criticized Amazon for its treatment of staff, reached out to the company in a letter "asking Amazon to confirm how the total compensation of employees who would have received stock options — those with the company for two or more years — will be affected as a result of the recent changes," according to The New York Times.

He has not yet received a response from the company.

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Amazon hourly workers received a dramatic pay rise last week, but it could cost them thousands of dollars a year in loss of stock options and monthly bonuses, The New York Times reported.
amazon, workers, pay, raise
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2018-42-10
Wednesday, 10 October 2018 09:42 AM
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