[US] Amazon’s 2025 salary restructure prioritises top performers

Amazon is reshaping its salary structure to give more significant rewards to long-term high performers, Mashable reports.

Under the new guidelines, Amazon employees with consistent top performance ratings over four years will now receive 110 per cent of their pay band, an increase from the previous cap of 100 per cent.

However, newcomers achieving top ratings for the first time will reportedly see a reduced payout of 70 per cent of their pay band, down from 80 per cent last year. The online retail giant claims that the changes are intended to emphasise sustained excellence while adjusting rewards for first-time high achievers.

Amazon's revised compensation model emphasises rewarding employees with consistent long-term performance. The updated system favours workers who have consistently exceeded expectations over multiple review cycles and offers higher payouts for long-term high performers.

Employees promoted to the Highly Valued 2 (HV2) level, for example, will now receive only 10 per cent of their pay range, a decrease from 20 per cent. Those demoted from Highly Valued 3 (HV3) to HV2 will retain their 20 per cent payout. The new model breaks down payouts by rating tiers, in a move to recognise sustained excellence in employees' roles.

In addition, Amazon's revised pay structure reportedly introduces significant changes, particularly for first-time high performers. Employees who receive a Highly Valued 3 (HV3) rating for the first time will see a reduction in their payout, now receiving 40 per cent of their pay range instead of 50 per cent. Those with two consecutive Top Tier ratings will receive 90 per cent of their pay band, slightly down from 100 per cent. These adjustments reflect Amazon's focus on rewarding sustained excellence over one-off achievements.

The changing structure of Amazon’s compensation model mirrors broader trends in the tech industry. Companies including Google, Meta, and Microsoft are also moving towards performance-based pay. These tech firms are also honing their internal review processes and reducing rewards for underperformers, putting emphasis on long-term value and consistent performance rather than fluctuating output year-to-year.

The changes have reportedly provoked employee dissatisfaction, in particular over the lack of transparency in how pay and performance are linked. Amazon continues to face criticism for its failure to allow managers to disclose individual performance ratings, leaving employees uncertain about their standing. 

To mitigate concerns, Amazon is piloting a programme which lets workers convert up to 25 per cent of their stock grants into cash, bringing more immediate financial flexibility.

Source: Mashable

Amazon is reshaping its salary structure to give more significant rewards to long-term high performers, Mashable reports.

Under the new guidelines, Amazon employees with consistent top performance ratings over four years will now receive 110 per cent of their pay band, an increase from the previous cap of 100 per cent.

However, newcomers achieving top ratings for the first time will reportedly see a reduced payout of 70 per cent of their pay band, down from 80 per cent last year. The online retail giant claims that the changes are intended to emphasise sustained excellence while adjusting rewards for first-time high achievers.

Amazon's revised compensation model emphasises rewarding employees with consistent long-term performance. The updated system favours workers who have consistently exceeded expectations over multiple review cycles and offers higher payouts for long-term high performers.

Employees promoted to the Highly Valued 2 (HV2) level, for example, will now receive only 10 per cent of their pay range, a decrease from 20 per cent. Those demoted from Highly Valued 3 (HV3) to HV2 will retain their 20 per cent payout. The new model breaks down payouts by rating tiers, in a move to recognise sustained excellence in employees' roles.

In addition, Amazon's revised pay structure reportedly introduces significant changes, particularly for first-time high performers. Employees who receive a Highly Valued 3 (HV3) rating for the first time will see a reduction in their payout, now receiving 40 per cent of their pay range instead of 50 per cent. Those with two consecutive Top Tier ratings will receive 90 per cent of their pay band, slightly down from 100 per cent. These adjustments reflect Amazon's focus on rewarding sustained excellence over one-off achievements.

The changing structure of Amazon’s compensation model mirrors broader trends in the tech industry. Companies including Google, Meta, and Microsoft are also moving towards performance-based pay. These tech firms are also honing their internal review processes and reducing rewards for underperformers, putting emphasis on long-term value and consistent performance rather than fluctuating output year-to-year.

The changes have reportedly provoked employee dissatisfaction, in particular over the lack of transparency in how pay and performance are linked. Amazon continues to face criticism for its failure to allow managers to disclose individual performance ratings, leaving employees uncertain about their standing. 

To mitigate concerns, Amazon is piloting a programme which lets workers convert up to 25 per cent of their stock grants into cash, bringing more immediate financial flexibility.

Source: Mashable