TechCrunch | Posted August 24, 2018 | 07:20:01The bonuses Google and Amazon offer their users are worth less than the money the companies pay to employees, according to a new study.
The researchers from UC Berkeley’s School of Information say the companies’ bonuses are “a deal breaker” for users.
“They should be a bonus that’s a little bit more,” said Adam Clements, an associate professor of business at UC Berkeley and one of the study’s authors.
“It’s not just that the bonuses are so low, they’re also really low in terms of how much it actually costs to do it.”
The study looked at how much each company pays its top-paid employees, including the compensation packages for executives and other top-tier employees.
It found that Amazon pays its executives an average of $12.8 million a year, while Google pays its employees an average salary of $19.4 million, or $12,000 per year.
Both companies’ executives make more than $250,000 a year.
“Google pays its CEOs an average compensation of $16.4 mil, which is about twice as much as Amazon,” Clements said.
“Amazon pays its highest-paid executives about $12 mil, but that’s just about a quarter of Google’s salary.”
The researchers say these bonuses don’t seem to add up.
“We can’t say they’re a bargain, but they are a little better than people think,” said study co-author Robert Kagan.
“The pay of top executives is a lot higher than the pay of people who work in other industries, like software engineers.”
The companies said that the study was a collaboration with the consulting firm Mercer.
Mercer did not immediately respond to a request for comment.
Google’s CEO, Sundar Pichai, said in a statement that the companies are “in a unique position to deliver a better customer experience and value proposition.”
“We take pride in our ability to do great work in a competitive environment, and we want to make sure our team is motivated and excited about their work every day,” Pichay said.