Amazon is planning to trim employee stock awards
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Amazon has announced a plan to trim the employee stock awards that are usually a part of the company’s compensation plan. The change comes as the tech company navigates an uncertain economic climate.
Amazon plans to trim employee stock awards
The company said it had taken measures to reduce the number of restricted stock units (RSU) awards during the final outlook year. However, the company did not clarify the period of the final outlook year that these changes would be taking place. The stock awards will be reduced by a small amount.
This development comes several weeks after the tech company announced that it would be laying off more employees. This will be the second round of layoffs announced by the company. The layoffs come amid a wave of job cuts at the tech giant that have affected the technology sector. The economy has been facing a rough outlook, forcing companies to make painful but necessary changes.
The plans by Amazon to change its pay structure were first reported by Business Insider. The publication said that Amazon plans to re-evaluate its 2025 compensation plan during the first quarter of 2024 as it readies for “stock variation.”
The company is also considering the possibility of shifting its compensation model in the future. Any changes to this model will achieve more balance between equity and the base cash compensation. The company’s report comes after evaluating the uncertain economic outlook and the compensation budget.
The economic climate has hit the shares of tech companies the most. However, a remarkable recovery has been witnessed this year. In 2023 alone, Amazon shares have increased by over 20% after losing nearly half of their value in 2022.
Amazon’s Takeover of iRobot under scrutiny
In another development surrounding Amazon, the tech giant’s planned takeover of iRobot Corp is currently under probe by UK regulators. The UK competition regulator was investigating Amazon’s plans to acquire the robot vacuum maker.
Amazon is expected to acquire iRobot for $1.7 billion, which is part of the company’s efforts to expand its range of smart home devices. However, this acquisition might now be delayed because of the review being conducted by the US Federal Trade Commission.
According to the UK’s Competition and Markets Authority, the probe would investigate whether this takeover deal will affect competition in the connected device market. The CMA has already invited interested parties to send their comments on the deal.
The acquisition comes when the tech company wants to expand its business operations to remain competitive and continue attracting many users to grow its revenue base. Regulators are probing whether the deal will be good for customers.
Amazon believes that the iRobot takeover deal will be more beneficial for the customers of the ecommerce company. The spokesperson said the company was cooperating with the regulators reviewing the merger deal.
