Amazon’s minimum wage hike comes with a catch for some workers
After raising its minimum wage to $15 an hour, Amazon cut stock options and incentive-based bonuses for some employees. Before the change, stock options guaranteed employees a future slice of Amazon’s stock at a time when individual shares are valued at more than $1,950 and warehouse employees received monthly incentive-based bonuses when their facilities hit production goals.
- The significant pay raise is calculated to more than compensate for the loss of stock options and incentive bonuses
- Because the compensation is no longer incentive-based, the compensation will be more immediate and predictable
- The phasing-out of the stock options and incentives should offset some of the costs associated with the wage hike
- Why do you think Amazon is now offering a minimum wage of $15 an hour?
- How will employee satisfaction increase or decrease due to the wage changes?