Categories: TechnologyWorld

Amazon plans to trim employee stock awards amid tough economy

Amazon.com Inc said it would reduce employee stock awards, a part of its compensation plan, as the e-commerce giant navigates an uncertain economy.

“We made the decision to reduce RSU (restricted stock units) awards in the final outlook year by a small amount (other years are not impacted),” an Amazon spokesperson said in an emailed statement, without specifying the period of the final outlook year.

The news comes weeks after Amazon announced a second round of mass layoffs, piling on to a wave of job cuts that has swept the technology sector as a rough economy forces companies to get leaner.

Business Insider had first reported the planned change in the company’s pay structure and said Amazon would reevaluate 2025 compensation in the first quarter of next year to “plan for stock variation”.

The company was weighing the possibility of adjusting its compensation model in the future to be more balanced between base cash compensation and equity, after looking at the combination of an uncertain economy and its compensation budget, the spokesperson said.

Amazon’s shares have gained more than 20% this year, following a near 50% tumble in 2022.

Source : Reuters

GLOBAL BUSINESS AND FINANCE MAGAZINE

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