You can be on Entrepreneur’s cover!

Amazon More Than Doubles Maximum Base Pay for Corporate Employees The company is increasing maximum base pay for corporate and tech employees to $350,000.

By Emily Rella

entrepreneur daily

Chesnot | Getty Images

Amazon made headlines last week when the company announced that it would be raising prices of its beloved Prime service by 17% for new and existing subscribers, citing inflation and the need to offset pandemic-related costs (namely in transportation and labor.)

Shares of the company skyrocketed late last Thursday thanks to an impressive earnings report from Q4 2021, which showed a 9% year-over-year sales increase and total revenue of $137.4 billion — and now the company is looking ahead in a positive light.

On Tuesday, Amazon revealed to employees that it would be increasing maximum base pay for tech and corporate employees by more than double to a solid $350,000 (up from $160,000.)

Related: Amazon Workers Walk Off Job, Say the Company Cut Break Times Because the Pandemic Is 'Supposedly' Over

"This past year has seen a particularly competitive labor market and in doing a thorough analysis of various options, weighing the economics of our business and the need to remain competitive for attracting and retaining top talent, we decided to make meaningfully bigger increases to our compensation levels than we do in a typical year," Amazon said in a memo to employees obtained by Geekwire.

Amazon did not disclose exactly how much the salary bumps would cost the company as a whole, but noted that proper compensation up to the new maximum amount would be evaluated based on the individual employee's performance, area of work and conditions of the market at the time.

It's important to note that the bump in maximum base pay is even more substantial to Amazon employees than it would be in other companies because Amazon corporate and tech employees are compensated with certain stock awards in the company, the values of which can fluctuate based on the market.

Related: Customers Calling to 'Cancel' Amazon Prime After New Price Hikes Announced

The new pay structure will also change the way equity in the company is given to employees based on promotional cycles.

"Managers will review compensation at the time of a promotion, and issue additional stock awards mid-year as warranted, rather than waiting until the next annual compensation cycle," Geekwire reported.

Overall compensation for employees globally will also be increased, though the company did not disclose by how much that would be.

The doubling down on employees comes after a report at the end of last year claimed that workers "struggled" for fair compensation and PTO after being injured on the job.

"I've been having to fight Amazon for time off and money," 21-year-old employee Chloe Roberson said at the time. "I have not had a single day that I haven't been an absolute sobbing mess because of the stress Amazon continues to put me through."

Amazon also faced worker walkouts in two Chicago-area facilities ahead of the holiday season after claiming they were given shorter break times and that the company refused to raise wages.

Shares of the company were down around 4% year over year as of Tuesday afternoon.

Related: Reports Reveal 2 Huge Brands Are Thinking About Buying Peloton

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

This Dad Started a Side Hustle to Save for His Daughter's College Fund — Then It Earned $1 Million and Caught Apple's Attention

In 2015, Greg Kerr, now owner of Alchemy Merch, was working as musician when he noticed a lucrative opportunity.

Business News

Yes, You Can Buy a Foldable Tiny Home on Amazon — And Now It's Selling for Less Than $12,000

The waterproof and flameproof house was listed around $35,000 a few months ago.

Starting a Business

4 Common Mistakes That Will Spell Doom Your Ecommerce Business

It's hard to spot a success story before it happens, yet it's easy to tell if a business will struggle. With that in mind, here are the four most common mistakes people make that you should avoid when starting an ecommerce business.

Money & Finance

4 Things to Know About Credit Financing Your Business Following the 'Fed Pivot'

With cheap money behind us, you'll want to rethink how you finance your business

Side Hustle

This Insurance Agent Started a Side Hustle Inspired By Nostalgia for His Home State — Now It Earns Nearly $40,000 a Month

After moving to New York City, Danny Trejo started a business to stay in touch with his roots — literally.