Amazon is revising its compensation model to better reward employees who consistently demonstrate high performance while reducing payouts for lower performers. According to internal guidelines, Amazon is adjusting pay bands to recognize long-term top performers more effectively. Employees receiving a ‘Top Tier’ performance rating for four consecutive years will now receive 110% of their pay range, surpassing the previous cap. First-time Top Tier recipients will see their compensation reduced from 80% to 70% of their pay band. This approach aligns Amazon with other tech giants like Google, Microsoft, and Meta, which are also tightening costs and streamlining employee rewards. Amazon continues a pilot program allowing employees to take 25% of their new stock awards in cash, addressing concerns about stock compensation’s appeal. Despite the changes, most employees showing improvement still received raises this year. — new from Business Insider
