←back to thread

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: 0.001s | source
Show context
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

replies(2): >>34889787 #>>34889893 #
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 ?

replies(4): >>34889879 #>>34889904 #>>34890032 #>>34895352 #
loeg ◴[22 Feb 23 00:40 UTC] No.34889904[source]▶
> 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 ?

All employee compensation is (minuscule) dilution. Don't worry about it too much.

replies(1): >>34889993 #
aeyes ◴[22 Feb 23 00:51 UTC] No.34889993{3}[source]▶
> All employee compensation is (minuscule) dilution.

Miniscule? Is this a joke? Last year their stock based compensation was almost $20B. As a shareholder I wouldn't be amused about this.

replies(2): >>34890281 #>>34903103 #
1. mabbo ◴[22 Feb 23 01:25 UTC] No.34890281{4}[source]▶
Why? The alternative is to pay those people with cash, which costs the company money. That would lower the value of the stock because profits would become losses.

It works out to be the exact same thing, except that Amazon doesn't record a loss on its finances.