Amazon is revamping its employee compensation structure to more sharply reward long-term high performers, while reducing payouts for newer or lower-rated employees. Workers who maintain “Top Tier” ratings for four consecutive years can now earn 110% of their pay range—exceeding the prior cap of 100%. However, first-time Top Tier recipients will receive only 70%, down from 80% previously. These updates align Amazon with broader Big Tech trends emphasizing cost control and performance-based incentives. The new model also puts more weight on an employee's rating history and continues offering stock-to-cash conversion options to address concerns about equity volatility. Internal frustrations persist over the system’s opacity, as employees are not told their exact performance tier.
