[bryanlarsen]

And the Amazon statement in the article says "more than compensates for the phase out of incentive pay and future RSU grants."

The conflict is probably due to the fact that RSU grants were very lucrative over the last few years. If you assume that the stock is going to quadruple in the next 3 years, then yes, a RSU bonus is probably better than a raise, but I don't think Amazon will be a 4 trillion dollar company in 3 years time...

[dragonwriter]

> The conflict is probably due to the fact that RSU grants were very lucrative over the last few years.

The conflict is probably due to the fact that Amazon publicly and loudly announced the raises alone in response to political pressure, to pretend they were giving people the same deal but with higher hourly wage, and the the benefit cuts became known later and separately. It would be a conflict even if there was no question that everyone was getting at least a small net raise, because even if that is true everyone is also getting a smaller net raise than Amazon tried to get public credit for. Being caught in a lie, including a lie of omission, by people concerned with the issue about which you are being deceptive, produces (or exacerbates) conflict.

[p0rkbelly]

correct. For companies with heavy RSU based compensation they assume a certain % of growth every year. Say 10%. Let's say Amazon did 50% year over year. You did better than you expected. However, next year you will get less RSUs since you made a lot more than planned in the previous year.

Having a very good year, as I imagine most Amazon employees did, does not mean you should get the same windfall money next year. I'm sure that is not properly understood.

[behringer]

Not properly understood? No, the bonuses were taken away and the pay rate was raised instead. However, Amazon said people were just getting a raise because of the poor pay they've been getting. They weren't promised a different way of getting paid. They were promised a raise

[p0rkbelly]

I read an article that said a lot of employee's look at their RSU as a bonus of when it vets. But in reality, it's part of their compensation. Not sure what Amazon told employees vs what was in the press "starting wage of $15". I can understand the frustration if they said "everyone is getting a raise" and then the math doesn't check out. We need more math.

I've been in a situation where I worked for a company where a large portion of my comp was RSUs. We had a really good year and I probably made $30,000K more than they were estimating (assuming the stock grew at x%). The next year and two, I got a ~5% raise. I took home less money those two years since I had a windfall the the first year and then our stock leveled out. So despite performing well, and getting healthy raises, I took home less money.

I would imagine the hourly workers might have just a few RSUs at best at Amazon's share price of $1500-$2000 per stock. Since that is such a large percentage of their annual income and if Amazon was trying to level it out to make it less spikey, people probably thought money was being taken away because Amazon's stock did so well the previous couple years.

Basically, Amazon Employee's got really lucky with RSUs and got paid more than Amazon was planning for. So now Amazon wants to bump them up in "planned/target" compensation -- which may be less than they made previously because the stock did wildly good.