A Closer Look at Amazon’s Compensation and CEO-to-Worker Pay Ratio
The Numbers Behind Amazon’s Median Employee Pay
According to the recently released annual proxy statement from Amazon, the median pay for its workers in 2020 totaled $29,007. This figure represents a $159 increase compared to the previous year. It’s important to note that the calculation includes all full-time and part-time permanent and temporary employees, excluding the CEO.
Comparing CEO-to-Worker Pay Ratios
Amazon’s CEO-to-worker pay ratio stands at 58:1, a figure lower than that of other major retailers like Walmart and CVS. In fact, Walmart’s ratio sits at a staggering 983:1, while CVS’s ratio is 434:1, as reported by Payscale.com.
Amazon’s Commitment to Fair Wages
In 2018, Amazon made headlines by raising its minimum wage for US employees to $15 per hour. This move aimed to ensure better compensation for their workforce.
Bezos’ Compensation and Fortune
Amazon’s founder and CEO, Jeff Bezos, earned an annual compensation of $1,681,840 in 2020. This figure remains unchanged from the previous year. It’s worth noting that Bezos’ earnings in just one week surpass the annual salary of the median Amazon worker. However, Bezos’ primary source of wealth comes from his ownership of approximately 10% of Amazon’s stock, equivalent to 53 million shares.
Bezos’ Staggering Net Worth
Bezos’ net worth experienced tremendous growth during the COVID-19 pandemic, with his fortune skyrocketing by tens of billions of dollars. Currently, his estimated net worth is nearly $200 billion, making him the world’s wealthiest individual. Despite brief moments when Tesla CEO Elon Musk’s net worth surpassed Bezos’, the Amazon CEO remains at the top of the wealth rankings, according to Fortune.
Amazon’s Employees and Wage Increases
In the United States, Amazon’s full-time employees experienced a more substantial wage boost in 2020. The company reported a median annual compensation of $37,930, indicating a $1,290 increase. This raise resulted from special bonuses and incentives awarded to acknowledge their crucial role in serving communities during the COVID-19 pandemic.
Criticism and the Path Forward
While Amazon has faced criticism regarding working conditions, particularly for its drivers, it is important to note that not all employees share the same negative experiences. Some workers, including those at the Bessemer, Alabama warehouse who recently voted against unionizing, appreciate the company’s good pay and benefits.
In his final letter to shareholders as CEO, Bezos emphasized Amazon’s goal of being “Earth’s best employer.” He underscored the company’s commitment to fair wages, highlighting their decision to establish a $15 minimum wage for hourly employees two and a half years prior. Bezos also called out other major employers, such as Walmart, for their failure to raise wages to the same level.
It is clear that Amazon recognizes the significance of its workforce and continually strives to lead with fair compensation and employee support.
Image Source: Amazon