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

(fortune.com)
66 points colanderman | 1 comments | 21 Feb 23 23:29 UTC | HN request time: 0.201s | source
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spacephysics ◴[22 Feb 23 00:20 UTC] No.34889736[source]▶
Wait, so share prices move? /s

It’s the nature of a compensation package. Part of it is risk. If you didn’t adjust for risk during negotiating your pay, or was expecting more purely from past performance of the stock, that’s on them

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whatever1 ◴[22 Feb 23 00:25 UTC] No.34889787[source]▶
The company was not giving raises when the stock was going up with the rationale that there is a compensation target that was exceeded.

Now that the compensation is way below the target the company is silent.

So 0 risk for the company, all the risk goes to the employees.

And btw the stock that AMZN was giving to the employees was coming out of thin air. Not from buybacks. So they were compensating people with dilution ?

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1. rmk ◴[22 Feb 23 00:55 UTC] No.34890032[source]▶
Companies set aside stock for option pools, can issue more stock, etc. It's like the treasury/fed rolled into one, that governs company stock. For instance, the typical SV company will put 20% of the company towards employee option pools. SV is unique in setting aside a larger portion of the company towards employee ownership; companies in other sectors of the economy do not do this.

But I agree with your statement about companies putting the risk burden on employees and not much on themselves.