trending Market Intelligence /marketintelligence/en/news-insights/trending/agqukqyky9bzepywnjutvq2 content esgSubNav
In This List

Amazon to give longtime employees higher raise amid pay scheme backlash


Insight Weekly: SVB fallout limited; US rents up; renewable natural gas investments flow in


Bank failures: The importance of liquidity and funding data


A Cloud Migration Plan for Corporations featuring Snowflake®


Essential IR Insights Newsletter - February 2023

Amazon to give longtime employees higher raise amid pay scheme backlash Inc. will provide a higher raise to longtime warehouse employees after it faced a backlash for removing monthly bonuses and stock option awards for workers in the U.S. and U.K., the Associated Press reported Oct. 10, citing a statement from Amazon.

Last week, the company announced that it is increasing the current minimum wage to $15 from $7.25 for its full-time, part-time, temporary and seasonal employees across the U.S., effective Nov. 1. The company also committed to raising the minimum wage for employees in London to at least £10.50 per hour while also pledging to increase the minimum wage of those outside of the city to at least £9.50.

Shortly after the announcement, Amazon confirmed that it has eliminated workers' monthly bonuses and stock option awards worth nearly $1,800 a share, saying that the wage increase "more than compensates" for the loss in other perks.

The news agency said the e-commerce giant is now making adjustments to pay raises for its employees. In a statement, the company reportedly said it has been "adjusting site by site and person by person as needed since the announcement to ensure everyone experiences the benefit of this change."

"We moved quickly to get this information to our teams as fast as possible knowing there would be certain cases that would need to be adjusted between the announcement and November 1st when this new $15 minimum takes effect," Amazon reportedly said.

Workers who already made $15 an hour will receive more than the $1 an hour raise promised last week, the report added.

According to the Associated Press report, employees at Amazon's Maryland warehouse were also told that they will receive cash payouts for reaching milestones with the company. The retailer's staff reportedly will receive $1,500 for remaining with Amazon for five years, and $3,000 after staying with the company for 10, 15 and 20 years.

Seattle-based Amazon previously gave its workers one or two shares of the company's stock after each anniversary, the report added.