Amazon to cut bonuses, stock benefits as it raises wages
Ecommerce giant will phase out bonuses and stock program after US$15 an hour minimum wage announcement.
NEW YORK—Amazon made a big splash this week with its US$15 an hour minimum wage announcement, but lost in the fine print: Existing warehouse workers will no longer receive stock in the company or collect bonuses.
The online giant says next month it will end bonuses, which paid workers extra based on their attendance and warehouse productivity, as it boosts its minimum wage.
Amazon will also phase out its restricted stock unit program, which gave shares to workers if they stayed with Amazon for a certain amount of years. Amazon says it will replace it with a program next year that will allow workers to buy stock, but didn’t provide details.
Amazon.com Inc. says “compensation will be more immediate and predictable” with the changes.
The company said its other benefits, such as 401(k) retirement accounts and health insurance, were not changed.