Case analysis reveals strengths and weaknesses of Amazon's pay structure, suggesting improvements for retention and competitiveness.
As global technology companies compete more and more, the way companies design their pay systems has become very important. A good pay system can help a company do well and keep talented people from leaving. This paper looks at the pay system of Amazon. This study examines the structural logic of Amazon's pay system through empirical case analysis, analyzes its benefits and drawbacks, and offersspecific recommendations for improvement. First, the paper explains how Amazon pays its board members and key employees. This includes stock rewards (called RSUs), yearly pay, and the fact that Amazon does not give extra money for attending meetings. Then, the paper looks at how this system works in terms of motivation, fairness, and how well it fits the competitive job market. It also compares Amazons pay system with those used by other large tech companies, like Google and Microsoft, to see how well Amazons system helps it keep top talent and stay competitive. In the end, the paper gives some ideas for how Amazon could improve its system. These include linking pay more closely to performance, and creating more kinds of pay, not just stock.
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Hao Yue (2025) studied this question.