Amazon will not give base pay increases to many senior employees this year

Amazon has distributed internal guidelines to managers to address potential employee inquiries regarding the decision not to increase base pay. These guidelines instruct managers to explain the absence of pay raises by pointing to the significant rise in Amazon's stock price as this increase has led to many employees' total compensation.

In Short

• Amazon has reportedly halted base pay increases for senior employees this year.
• Surge in stock prices has prompted adjustment in compensation strategy.
• The priority in terms of cash incerease be given to employees who are reliant on salary.

Amazon has reportedly taken a decision to not increase base pay for many senior employees this year. This move is attributed to a significant spike in Amazon's stock prices, which have risen by more than 75 percent over the past year. Given the crucial role stock plays in employees' compensation, the spike in stock prices typically translates to higher overall earnings. However, it also provides Amazon with grounds to restrain from increasing cash-based salaries.

Amazon has distributed internal guidelines to managers to address potential employee inquiries regarding the decision not to increase base pay. These guidelines, disclosed in a Q&A document (obtained by Business Insider), instruct managers to explain the absence of pay raises by pointing to the significant rise in Amazon's stock price as this increase has led to many employees' total compensation exceeding the predefined pay range for their positions.