COMP NEWS – Amazon is slashing cash bonuses from its senior workers this year, a move sure to anger long-time employees who are used to the generous bonuses.

Amazon’s senior managers and other senior leaders won’t receive cash pay raises this year, Fortune has learned, eliminating a key reward for top employees at the online retailing giant.

 

Some of these employees may receive additional company stock, but that’s not guaranteed.

 

Amazon compensation staff have started notifying some leaders about the changes and explaining this year’s policy.

 

The move applies to employees whose roles are classified internally as Level 6 or higher, which is more or less middle management and above. But Level 6 roles also include some individual contributors, such as senior software engineers. The compensation update applies to all employees at these levels, whether they are in office desk jobs or in managerial roles inside Amazon facilities such as fulfillment centers.

 

Historically, total compensation packages for many Amazon corporate employees consist of a larger ratio of stock compensation than at other tech companies. As such, Amazon spokesperson Margaret Callahan made clear in a statement the company’s belief that senior Amazon employees have already benefited greatly from Amazon’s share price increase of around 80% over the past 12 months.

To read more about Amazon’s controversial bonus eliminations, click here.

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