Amazon Withholds Cash Raises for Senior Staff Amid Stock Surge

The e-commerce giant prioritizes stock-based compensation over cash for senior employees, reflecting an 85% increase in stock value over the past year.

Amazon is withholding cash pay raises from senior managers and other leaders this year, due to the company's stock soaring well-above expectations.
The compensation update applies to employees classified as Level 6 or higher in Amazon's internal hierarchy, affecting senior managers and engineers among others.
Employees at these levels will benefit from Amazon stock's 85% increase in value over the past 12 months, as their compensation packages include more restricted stock than lower-level employees.
Amazon has prioritized cash base pay increases for employees whose compensation is less rooted in stock, with some exceptions for those recently promoted or transferred.
The company also announced a $2.75 billion investment in OpenAI-rival Anthropic, taking its total investment in the artificial intelligence startup to $4 billion.