Amazon says wage hike ‘more than compensates’ for loss of bonuses
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Re: Amazon says wage hike ‘more than compensates’ for loss of bonuses
#2[deleted]
Re: Amazon says wage hike ‘more than compensates’ for loss of bonuses
#3I can understand some of the frustration, especially for those making just shy of $15 before the raise, but even if the raise is only from $14 to $15, that still is around $2,000/yr (assuming 40 hour work week) that is guaranteed the way a bonus generally isn't.
I would almost always prefer a raise over a one-time bonus for that exact reason. In my experiences, I can't always count on my company giving me a yearly bonus.
Re: Amazon says wage hike ‘more than compensates’ for loss of bonuses
#4Are bonuses incentivized? What is that incentive and how will it impact Amazon's business now it's gone?
Re: Amazon says wage hike ‘more than compensates’ for loss of bonuses
#5I can understand some of the frustration, especially for those making just shy of $15 before the raise, but even if the raise is only from $14 to $15, that still is around $2,000/yr (assuming 40 hour work week) that is guaranteed the way a bonus generally isn't. I would almost always prefer a raise over a one-time bonus for that exact reason. In my experiences, I can't always count on my company giving me a yearly bo…
It was on a curve. If you were already making over $15, you still got a raise.
edit: If you were making under $15, you could still be bumped higher than $15 as well. They raised the base rate and then there are still modifiers on top of that.
Re: Amazon says wage hike ‘more than compensates’ for loss of bonuses
#6I can understand some of the frustration, especially for those making just shy of $15 before the raise, but even if the raise is only from $14 to $15, that still is around $2,000/yr (assuming 40 hour work week) that is guaranteed the way a bonus generally isn't. I would almost always prefer a raise over a one-time bonus for that exact reason. In my experiences, I can't always count on my company giving me a yearly bo…
That's all well and good, but Amazon replaced their bonuses for raises and then pretended like they were giving everyone an actual raise when in fact, some people could end up getting a pay cut.
Re: Amazon says wage hike ‘more than compensates’ for loss of bonuses
#7I can understand some of the frustration, especially for those making just shy of $15 before the raise, but even if the raise is only from $14 to $15, that still is around $2,000/yr (assuming 40 hour work week) that is guaranteed the way a bonus generally isn't. I would almost always prefer a raise over a one-time bonus for that exact reason. In my experiences, I can't always count on my company giving me a yearly bo…
This makes plenty sense but, still, why not keep both when they can clearly afford to? It really doesn't look good. They say the new setup more than compensates for the removal of the old. But how much more? Does it cost amazon 5% more, 20%?
Re: Amazon says wage hike ‘more than compensates’ for loss of bonuses
#8Are bonuses incentivized? What is that incentive and how will it impact Amazon's business now it's gone?
They were generally not incentivized, but had a 2 year vesting period. That kept people working at Amazon longer for that extra few grand.
Re: Amazon says wage hike ‘more than compensates’ for loss of bonuses
#9I can understand some of the frustration, especially for those making just shy of $15 before the raise, but even if the raise is only from $14 to $15, that still is around $2,000/yr (assuming 40 hour work week) that is guaranteed the way a bonus generally isn't. I would almost always prefer a raise over a one-time bonus for that exact reason. In my experiences, I can't always count on my company giving me a yearly bo…
Not to mention, if next year they get let's say a 3% bump in salary, a bonus wouldn't be included into the calculation to determine their larger salary. Salaries are better than a bonus.
Re: Amazon says wage hike ‘more than compensates’ for loss of bonuses
#10In the past 5 years, Amazon's stock has gone up almost 6X. Anyone who got paid in RSUs almost certainly made out well. But, as Amazon points out in their statement, past results are no guarantee for stock performance going forward. I can pay you $500 in cash or I can give you $500 worth of stock (which vests over a period of time). Generally speaking, the cash (which you get right away) should always be valued more since you can spend it as you want, including using it to purchase stock (which these days can be purchased for nominal trading fees).
Furthermore, salary increases are always worth more than equivalent end-of-year cash bonuses, since you lose out on bonuses if you leave your job mid-year.