A 20-to-1 stock split An increase in maximum base salary compensation from $160,000 to $350,000 AMZN Stock Split A stock split often occurs when a company's stock price increases drastically and the company feels the need to split to increase access for investors, effectively making it easier for retail investors to purchase shares of Amazon. This stock split by itself should not intrinsically create any value. Owning 10 shares of Amazon at $2,200/share is the exact same as owning 200 shares of Amazon at $110/share. With that said, after the recent announcement, Amazon's stock surged over 5%. If you hold Amazon RSUs, the value of your RSUs will not change due to the split, you will simply have 20x the shares at 1/20th the price/share. From a company perspective this split will also make it easier for Amazon to specifically target employee compensation. As a simple example, if Amazon wanted to grant an employee $7,000 of RSUs, that's difficult to achieve with a stock price of -$2,000/share (three vs. four shares). With a stock price of -$100/share, $7,000 is much easier to target (70 shares). Amazon Share Buyback Program Base Salary Increase at Amazon
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