— are contributing to growing anxiety among Amazon's rank-and-file. The company's shares have slumped more than 30% in the past year, which adds an extra layer of tension as many workers get paid a lot in equity.
These annual discussions are important because Amazon has historically offered less base cash pay compared to some of its peers. Instead, it has used, or RSUs, and the potential for massive share price increases, attract and keep talent. That strategy worked well when Amazon shares surged from 2009 through most of 2021. But last year, the stock plunged, undermining the value of the stock awards as an employee-retention tool.
Most Amazon employees are expecting declines in their total compensation. Last year, Amazon RSUs that start vesting this year at $3011.51 per share, or $150.57 on a split-adjusted basis, according to one of the internal documents. As of Monday, Amazon shares are trading at around $102, a 32% drop from last year's grant value. If the employees sold the shares they were awarded last year at Monday's price, they would end up with 32% less money.
For a separate question about stock volatility, managers are told to say Amazon's double planning cycle helps address it. "Every year is reviewed twice, so in this cycle we have reviewed 2024 and 2025. In Q1 2024, we will review 2025 again and 2026. In this way, we plan for stock variation," the guidelines said.
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