Tag Archives: compensation

A Slightly Wonky Follow-up on Pay, After the “Talent is a Power Curve” Post

Where I compare Amazon’s pay structure against the fact that talent is a power curve. Is it possible that Amazon was trying to model the curve? Or are Amazon’s compensation ranges not adequately reflecting differences in performance? While I don’t have an answer, the question itself has interesting implications. Continue reading

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Amazon’s Compensation Targets Exploit the Promotion Process and Pay Below Industry Rates

In which I review Amazon’s new compensation targets. This structure discourages promotion due to forcing newly-promoted people into the range minimum for 1-2 years, while insisting they perform at the next highest level for 2-4 years before they’re promoted. It also potentially places 80% of all employees at or below the midpoint for their level. Continue reading

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