Amazon eliminates monthly bonuses and stock grants after minimum wage increase

Amazon garnered praise for raising the minimum wage for its hourly workers to $15 yesterday, but the widely-publicized move also came at the expense of monthly bonuses and stock options. The company explained its decision to shift to a new stock purchase program in the announcement blog post yesterday, citing that hourly employees preferred the “predictability and immediacy of cash to RSUs,” or restricted stock units, but the post doesn’t mention the loss of monthly incentives, which Bloomberg reported earlier today.
Several Amazon warehouse employees have criticized the move, stating they would actually be losing thousands in incentive pay. Currently, warehouse workers get two shares of Amazon stock when they’re hired ($1,952.76 per share as of writing), and an additional stock option each year. After the changes take effect, the RSU program will be phased out for stocks that vest in 2020 and 2021, and it will be replaced with a direct stock purchase plan by the end of next year.

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https://www.theverge.com/2018/10/3/17934194/amazon-minimum-wage-raise-stock-options-bonus-warehouse
Gee. you mean the "15 an HOUR" crap isn't what you thought it would be?

Shocking.

Renae said:

https://www.theverge.com/2018/10/3/17934194/amazon-minimum-wage-raise-stock-options-bonus-warehouse
Gee. you mean the "15 an HOUR" crap isn't what you thought it would be?

Shocking.

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I thought those tax cuts were going to help the working man?

But it turns out workers get nothing, but Trump and his buddies get huge tax cuts.

Trump will personally save up to $15m under tax bill, analysis finds

You people who are part of the base have to quit bending over and saying "Yes Sir! Please give me another one sir!" before he's sold your country.

JustHanging said:

I thought those tax cuts were going to help the working man?

But it turns out workers get nothing, but Trump and his buddies get huge tax cuts.

Trump will personally save up to $15m under tax bill, analysis finds

You people who are part of the base have to quit bending over and saying "Yes Sir! Please give me another one sir!" before he's sold your country.

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Gee, the people that pay the most in taxes get the most money in a tax cut... SHOCKING. Economically illiterate people cry.. not shocking.

Curious if this works out to a pay cut, no difference or maintains a raise for most workers.


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Renae said:

https://www.theverge.com/2018/10/3/17934194/amazon-minimum-wage-raise-stock-options-bonus-warehouse
Gee. you mean the "15 an HOUR" crap isn't what you thought it would be?

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Actually, it is.

The incentive pay was one of the problems for Amazon employees, as it ratcheted up the pressure on employees to meet unrealistic productivity levels.

Most employees were getting $12-13/hour; that's $25k - $27k per year. That's going up to around $31k/yr. The workers who are currently getting $15/hr get a bump in pay, too.

The pay raise will more than offset the incentive pay and other bonuses for the vast majority of the warehouse workers, while reducing stress and pressure on the workers.

I might add, it's pretty clear Amazon is doing this to burnish their image, improve employee retention and rationalize labor costs.

Winston said:

Curious if this works out to a pay cut, no difference or maintains a raise for most workers.

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It's a significant pay raise, and a slightly better work environment, for almost all fulfillment center workers.

Renae said:

https://www.theverge.com/2018/10/3/17934194/amazon-minimum-wage-raise-stock-options-bonus-warehouse
Gee. you mean the "15 an HOUR" crap isn't what you thought it would be?

Shocking.

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Amazon is a notoriously obnoxious employer.

Renae said:

Gee, the people that pay the most in taxes get the most money in a tax cut... SHOCKING.

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So that's what they told you to think eh? As they get millions, and you get crumbs, or more likely nothing, and you're cheering literally it on.

SMH. No wonder Trump loves his base, they earn that love on a daily basis.

Donald Trump declares 'I love the poorly educated'

Economically illiterate people cry..

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You seem to be mistaking tears of laughter for crying. The whole world is laughing at you now Renae. You are a laughing stock.

America the laughingstock
Trump Has Made America Into A Laughingstock
The year the world laughed at the U.S.
European diplomats: Trump is a 'laughing stock'
'People here think Trump is a laughingstock'
Trump is making America the laughingstock of the world

not shocking.

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Nope. They usually do, that's what the Trump base has been doing for years now, complaining about being left behind economically.

Their pay will stabilize more that is for sure.
it as for the final outcome it will depend on how much in bonuses they received.

I would trade more leveled pay for bonuses any day but they can still do the employee
stock program.

My company had that at one time.
people could buy company stock at a 5% discount.

you had to hold it for a year before selling it but still you were up 5% on the stock price that you bought + any increase over that year.
i know a lot of people that made a lot of money on that.

I wish they would bring it back.

Renae said:

Gee, the people that pay the most in taxes get the most money in a tax cut... SHOCKING. Economically illiterate people cry.. not shocking.

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Not to mention that in the past about 47% of the poorest paid zero federal income taxes and now that percentage will rise to higher than 47%.

Moderate Right said:

Not to mention that in the past about 47% of the poorest paid zero federal income taxes and now that percentage will rise to higher than 47%.

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News flash! That number is way out of date, and it has been falling for years, long before the tax cuts. It's down to around 44% now, and it's fallen because the economy has been improving since 2010.

We should keep in mind that most of the people in that cohort are working poor, retired, students, or are taking care of a family member.

The Trump tax plan won't have a big impact on those groups. Most of the working poor (who pay lots of other taxes, of course) get a break from federal income taxes due to the Earned Income Tax Credit, which hasn't changed. The brackets don't change much, especially for low earners. While the new law raises the standard deductible, it also eliminates personal deductions, including for state and local taxes (including property taxes).

So, it is highly unlikely that the percentage who do not pay federal income taxes will grow. If that does happen, it won't be a result of recent changes to the tax code.