Amazon walking back raises after internal bug miscalculated compensation
businessinsider.com
Amazon walking back raises after internal bug miscalculated compensation
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Re: Amazon walking back raises after internal bug miscalculated compensation
#2Re: Amazon walking back raises after internal bug miscalculated compensation
#3The raises had to be approved though, right? It seems like an excuse to blame software for this. And it seems really off-putting that they wouldn’t just own the error, but instead try to revert it.
Re: Amazon walking back raises after internal bug miscalculated compensation
#4It looks like what happened is employees got a fixed number of RSUs. Their pay letter assigned a hypothetical value to those shares based on an incorrect stock price. So Amazon is probably not changing anything in the raise itself but rather correcting the hypothetical future value of the RSUs.
Re: Amazon walking back raises after internal bug miscalculated compensation
#5So it's likely that previous bonuses/raises were also based on 'old' stock prices. But since Amazon stock was (pretty much) always increasing, this means that those bonuses were consistently lower than what they should've been.
Of course it's only an issue now when the opposite is true, and is costing Amazon rather than the employees.
Re: Amazon walking back raises after internal bug miscalculated compensation
#6It looks like what happened is employees got a fixed number of RSUs. Their pay letter assigned a hypothetical value to those shares based on an incorrect stock price. So Amazon is probably not changing anything in the raise itself but rather correcting the hypothetical future value of the RSUs.
But from the employee side, RSUs are usually communicated (and reasoned about) in dollar amount, with the undersanding that one is getting a number of shares corresponding to that amount.
So even if it's an honest miscommunication, it's still a painful one.
Re: Amazon walking back raises after internal bug miscalculated compensation
#7[deleted]
Re: Amazon walking back raises after internal bug miscalculated compensation
#8It looks like what happened is employees got a fixed number of RSUs. Their pay letter assigned a hypothetical value to those shares based on an incorrect stock price. So Amazon is probably not changing anything in the raise itself but rather correcting the hypothetical future value of the RSUs.
Why would they get a fixed number of RSUs. I have always seen them assigned in dollar value, usually as a % of dollar salary
Re: Amazon walking back raises after internal bug miscalculated compensation
#9It looks like what happened is employees got a fixed number of RSUs. Their pay letter assigned a hypothetical value to those shares based on an incorrect stock price. So Amazon is probably not changing anything in the raise itself but rather correcting the hypothetical future value of the RSUs.
Why would they get a fixed number of RSUs. I have always seen them assigned in dollar value, usually as a % of dollar salary
I’ve only seen them fixed. That part of your comp is variable, tied to the success of the company
Re: Amazon walking back raises after internal bug miscalculated compensation
#10It looks like what happened is employees got a fixed number of RSUs. Their pay letter assigned a hypothetical value to those shares based on an incorrect stock price. So Amazon is probably not changing anything in the raise itself but rather correcting the hypothetical future value of the RSUs.
Why would they get a fixed number of RSUs. I have always seen them assigned in dollar value, usually as a % of dollar salary
I've never seen them assigned a dollar value (actually, in one case: SpaceX, which also had a 5 year vesting schedule instead of a standard 4 year). That would defeat the purpose of RSUs.