Amazon Stock (NASDAQ:AMZN)
According to a report published by the Wall Street Journal on Monday, people familiar with the matter stated that the recent decline in Amazon.com’s (NASDAQ:AMZN) share price has affected the company’s stock-heavy compensation plan. The decline in Amazon’s stock price occurred over the past year and totaled more than 36%.
According to the research, Amazon workers have received much less than their target salary. This is because many of their yearly wages comprise restricted stock units.
According to the WSJ, some persons acquainted with the subject have said that pay for 2023 is expected to be between 15% and 50% lower than the predicted objectives that AMZN offered to its workers.
“Our pay approach is designed to inspire workers to think like owners, which is why it relates overall remuneration to the company’s long-term success. This is one of how we aim to achieve this goal. This model entails some year-to-year upside and risk because the stock price can fluctuate. Still, Amazon has historically worked out very well for people who have taken a long-term view, an AMZN spokesperson named Brad Glasser stated in response to a request for comment by Seeking Alpha.
Only in 2022 did AMZN suffer a loss of over half of its value amid a larger recession that caused investors to shy away from growth firms. This category included mega-cap technology corporations. AMAZON has had sluggish growth in the retail sector of the firm.
According to some persons cited by WSJ, Amazon stock sells at roughly $97 per share. Still, certain staff compensation packages are designed around the idea that the shares would be around $170.
AMZN published its mixed results for the fourth quarter in early February. The business had a significant revenue beat, but revenues at its Amazon Web Services subsidiary were lower than estimates, which had previously been reduced.
Midway through January, Amazon announced it would proceed with around 18,000 job cutbacks.
Featured Image: Unsplash @ Daniel Eledut
Author Shariq Khan 
