Amazon staff might get paid 50% less because shares have fallen so much

How can they get paid 50% less when share prices drop by 35%? Can't get past the paywall.

I assume because equity is more than 50% of total comp. Or was.

Amazon does a weird thing where the mix of stock to cash varies by tenure. So, someone might have been at 85% cash 15% stock in year 1, but are now at 50% cash, 50% stock. So they're getting more stock now than in earlier years.

Sure, but even if stock was 100% of their comp, and the stock went down 35%, they're only down 35% -- not 50%. That's the point GP is making.

Yeah, it's a deceptive headline. In the article it says "For those who have been with the online behemoth the longest, up to 50% of their total income is balanced on market outcomes."

So if it goes to zero. Though presumably people would lose their salary then too.

The article claims:

> The past two years have not been as rosy for Amazon’s stock price. It fell 2.3% in 2021 and a whopping 49.5% last year.

This explains the headline. I guess that the figures depend on the specific dates you pick?

Amazon emplyees actually have a negative cash salary that they pay back with equity they sell.

Can you please elaborate more? I am confused

That was a joke my friend

It's gone down 35% in the last year. It's down 50+% off its peak.

If equity was 100% of total comp, and shares dropped by 35%, the most total comp could drop by is 35%. The smaller the share of equity, the smaller the percentage of total that drop would be

non-paywall link: https://archive.is/Wgxug

Because Amazon actually assumes a 15% growth in stock price every year. So even if the stock stays flat, you make 15% less. I used to be a manager there.