COMP NEWS – Amazon is preparing to make cuts, this time not to job roles but to executive compensation, as its stock price continues to slump.

• Amazon.Com, Inc (NASDAQ: AMZN) plans to reduce employee stock awards as part of its compensation plan as economic uncertainties weigh on its business.
• Amazon. decided to reduce RSU (restricted stock units) awards in the final outlook year by a small amount (other years are not impacted), Reuters cites an Amazon spokesperson statement.
• A separate report suggested Amazon.Com would reevaluate 2025 compensation in the first quarter of next year to “plan for stock variation.”
• Amazon 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.

The news comes in the wake of a prolonged slump for Amazon’s stock price, which led to slashes in corporate employee’s compensation and bonuses along with two rounds of extensive layoffs.

• The news comes weeks after Amazon announced a second round of mass layoffs.
• The prolonged slump in the company’s stock price has caused compensation for 2023 to be between 15% – 50% lower than the projected targets Amazon gave to employees.
• Amazon pays its corporate employees a large chunk of their annual salaries in restricted stock units.
• Historically Amazon’s base-pay compensation trailed its big-tech peers but made up the difference with stock awards that vest over several years.

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