Key Findings on Compensation at Amazon
A recent survey of Amazon's staff revealed that the company has achieved near-equal pay between men and women. According to the data, female employees earn 99.9% of what male employees earn in equivalent positions. For minority employees, the company reported they earn 100.1% of what their white counterparts take home.
In a statement, an Amazon spokesman affirmed the company's commitment "to keeping compensation fair and equitable," while acknowledging that slight year-to-year fluctuations can occur.
The Influence of Shareholder Activism
The disclosure of this data was not internally motivated. It came as a result of a shareholder proposal from Arjuna Capital, an activist investment firm. The firm advocates for corporate policies that support sustainability, including pay equity, arguing that such policies are good for business.
Amazon had initially taken a defensive posture, petitioning the Securities and Exchange Commission (SEC) to withhold the pay disparity information. However, the SEC denied Amazon's request. In response, Amazon released its survey findings, preempting the formal shareholder vote on Arjuna Capital's proposal.
"After an initially defensive response, Amazon is stepping up to the plate and making a public commitment to gender pay equity," said Natasha Lamb, Director of Equity Research and Shareholder Engagement at Arjuna Capital. "It's good for the company, it's good for employees, and it's good for shareholders."
A Wider Trend in Corporate Transparency
The push for pay equity at Amazon is part of a larger trend of successful shareholder engagements led by Arjuna Capital. The firm also prompted similar commitments to pay parity and data disclosure from other major tech companies, including:
- Expedia: Agreed to disclose its policies and goals for addressing the gender pay gap.
- Apple: Agreed to commit to pay parity.
- Intel: Also agreed to commit to pay parity.
This movement aligns with broader regulatory changes. At the time, the Equal Employment Opportunity Commission was ordered to begin collecting company pay data broken down by sex, ethnicity, and race, signaling a shift toward mandatory transparency.