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Lenny's Podcast: Product | Growth | Career cover image

Unpacking Amazon’s unique ways of working | Bill Carr (author of Working Backwards)

Lenny's Podcast: Product | Growth | Career

NOTE

Creating a company that doesn’t penalize people for failures: no performance bonuses

In many companies, working on a failed project can ruin your career and affect your compensation. However, our company had a different approach. Our compensation system didn't have performance bonuses and was based on the stock price, which encouraged long-term thinking. Because of this, I decided to move from working on the largest profit and loss (P&L) departments to digital media. Even though there was no established business there, my compensation wouldn't be affected. Our performance management system focused on evaluating actual contributions and outputs, rather than just being in a successful business. We cared about building, improving selection, and lowering prices.

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