Amazon has good news for its employees. The company is increasing base salary by more than than double. According to a leaked memo, which first appeared in GeekWire, “Amazon will boost its maximum base pay to $350,000 for corporate and tech employees, from $160,000 previously, as part of an overall increase in total compensation intended to help recruit top talent and retain existing employees.” Geekwire claims to have seen the memo as well as checked its authenticity with Amazon. The memo to employees appeared on its internal corporate site on Monday (February 7).
What does the memo says
“This past year has seen a particularly competitive labor market and in doing a thorough analysis of various options, weighing the economics of our business and the need to remain competitive for attracting and retaining top talent, we decided to make meaningfully bigger increases to our compensation levels than we do in a typical year,” reads the internal post.
“As compensation is unique for each employee (considering their performance, job family, and market conditions), these updates to the base pay cap and the total compensation ranges will affect every employee differently,” the internal post adds.
Is the increase in salary global
Amazon says it’s “increasing overall compensation ranges for most jobs globally, and the increases are much more considerable than we’ve done in the past.”
What is base pay
Base pay is a portion of employees’ total compensation. it does not include restricted stock units as well as other benefits such as sign-on bonuses.
When is appraisal due
Amazon is reportedly currently in the middle of its annual performance evaluation process, known internally as ‘Forte‘. This is reportedly the first review cycle since Andy Jassy became the company’s CEO in 2021.
Is there any other change in salary/promotion
Other than increasing base pay and compensation range, the company has also announced changes in the timing of compensation for employees when they are promoted. As per the report, managers will review compensation at the time of promotion, and issue additional stock awards mid-year as warranted, “to better align newly promoted employees with the compensation range of their new level.”