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How can they get paid 50% less when share prices drop by 35%? Can't get past the paywall.
by Aunche 4y ago
How can they get paid 50% less when share prices drop by 35%? Can't get past the paywall.
- ska 4y agoI assume because equity is more than 50% of total comp. Or was.
- Macha 4y agoIf 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
- deleted 4y ago[deleted]
- umeshunni 4y agoAmazon 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.
- DMell 4y agohttps://12ft.io/proxy?q=https%3A%2F%2Ffortune.com%2F2023%2F02%2F21%2Famazon-staff-pay-50-less-expecting-shares-fallen-andy-jassy%2F https://12ft.io/proxy?q=https%3A%2F%2Ffortune.com%2F2023%2F0...
- ojbyrne 4y agoYeah, 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.
- kilburn 4y agoThe 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?
- ntonozzi 4y agoAmazon emplyees actually have a negative cash salary that they pay back with equity they sell.
- amir734jj 4y agoCan you please elaborate more? I am confused
- ripper1138 4y agoThat was a joke my friend
- weeeeelp 4y agonon-paywall link: https://archive.is/Wgxug https://archive.is/Wgxug
- xerxesaa 4y agoBecause 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.