Amazon raises base pay cap for corporate and tech workers to $350K

According to Geekwire, Amazon will increase the highest base compensation for corporate and IT employees to $350,000 from $160,000. What’s at stake: The move is designed to align Amazon with competitors such as Google, Facebook, Apple, and Microsoft, as well as to assist the business retain and hire top people. According to a recent survey by job portal Dice, the competition for tech talent resulted in average tech salaries hitting six figures for the first time last year. Changes to basic pay limitations and compensation ranges, according to the corporation, will “impact every employee differently.”

Courtesy: Fox Business

“We decided to make meaningfully larger increases to our compensation levels than we do in a typical year after conducting a thorough analysis of various options, weighing the economics of our business and the need to remain competitive for attracting and retaining top talent,” Amazon wrote in an internal memo to employees obtained by Geekwire.

The e-commerce behemoth will raise the total salary range for most occupations around the world, with the hikes being far more “substantial” than in the past, according to the business. According to the message, “this past year has seen a particularly competitive labor market,” and there was a “need to remain competitive for attracting and maintaining top people.”

Against the backdrop of a tight labor market in the United States, Amazon upped its average beginning compensation for operations personnel in the United States to more than $18 (approximately Rs. 1,340) an hour last year.

According to the message, Amazon will examine newly promoted employees’ remuneration at the time of promotion and, if necessary, provide in-year stock awards to bring them within the new pay range.

Last week, Amazon claimed the largest one-day increase in value in its history. Following its spectacular quarterly report on February 4, shares of the online retail and cloud computing giant jumped 13.5 percent, boosting its market capitalization by nearly $190 billion (around Rs. 14,18,200 crore) by the close of trade.

According to Refinitiv statistics, this surpassed Apple’s record $181 billion (approximately Rs. 13,51,000 crore) one-day rise in stock market value on January 28 following the iPhone maker’s own spectacular quarterly report.

Amazon is now worth around $1.6 trillion (roughly Rs. 1,41,82060 crore). Meta Platforms’ stock fell 0.3 percent on Friday, putting its market capitalization at $660 billion (roughly Rs. 49,26,400 crore).

Amazon’s stock soared after the company posted better-than-expected profits late Thursday and announced a 17 percent increase in the price of its yearly US Prime subscriptions.

Amazon’s rise came only one day after Meta Platforms’ stock market value plummeted by more than $200 billion (approximately Rs. 14,92,800 crore) in the largest single-day loss for a US firm after the social network behemoth released a bleak prognosis.