Amazon is changing its salary structure, here’s who the new guidelines favour

Amazon is overhauling its compensation model to significantly favor longtime top performers while reducing payouts for first-time high achievers and those with inconsistent performance records. Under the new guidelines, veteran employees with consistent excellence stand to gain substantially more than their newer counterparts. According to internal guidelines obtained by Business Insider, employees who earn Amazon’s “Top Tier” performance rating for four consecutive years will now receive 110% of their pay range, exceeding the previous cap of 100%. Meanwhile, first-time Top Tier recipients will get 70% of their pay band, down from 80% last year.

“This approach ensures a steadier compensation progression,” states the internal pay guideline, referring to the company’s total compensation target metric.