Annual bonuses and stocks at Amazon
How do annual bonuses/stocks work at Amazon? For instance, at Microsoft we get annual rewards (bonus + stock based on performance). Bonus is paid out right away. Stock vests every quarter following the grant date. Both have a range with a max grant amount based on the level we are in.
What....a shitty company.
If you are getting either it means the stock is crashing. You are penalized for good performance.
That's true. Amazon is gracious enough to give more money or stocks in case one's 'total comp' or the person's target pay isn't met. This will only happen if the stock crashed. This doesn't hold any value as most folks are at Amazon only because their stocks are worth much more than the target comp, which normally doesn't change by much and is below market standards. That and the back loaded vesting keeps folks around, a nice trick.
Will they really, though? Who currently here has actually been through a stock price decline long and significant enough to last through Amazon's typically long refresh cycles (annual review grants are given out two years in advance) and can confirm this? They don't actually tell you your target (or aren't supposed to), and the cynical side of me suspects this is because they don't actually want to be held to it if the stock does tank.
And don’t assume your promotion will get you a nice raise. Mine was pitiful.
Don’t listen to LEs. I have got refreshers every year.
I honestly haven't heard of this before. I'm glad you do. Do you mind telling me what your TC and YOE is and what's the ratio of engineers that get refreshers every year? Also how long have you been at Amazon? OP also talked about annual bonuses, what's that like for you?
5 years at amazon. 6 YOE. SDE 2. TC230k. Got promoted in year 2. By refreshers, I mean RSU grants that vest in 2 years. I have got these every year besides year 1 when I hadn’t vested anything yet. I have been HV most years and TT for the first time last year. If I didn’t get these id be out the fuckin door.
It’s actually fairly simple: you have a secret (as in you’re not told what it actually is) “target” compensation value. If your estimated compensation for the upcoming year is below this number (which is derived from base salary + number of vesting RSUs * trailing 30 day share price average), you will get additional shares to “make up” the difference. The target is adjusted with respect to your performance for the prior year, but any adjustment beyond the market rate standard is temporary (i.e. it will be re-evaluated every year, so a single top tier rating doesn’t get you a sustained boost to your target). If you’re above the target for any reason (including share price appreciation), you get nothing. Doesn’t matter how you performed; the target was adjusted to account for that already. Pretty much everybody beyond entry-level (and not getting bad ratings/heading towards a PIP) will get refreshers that start to kick in past their fifth year because Amazon has a (fairly low) base salary cap, so it’s nearly impossible to hit your target without at least some RSUs. Promotions will move your target into the bottom of the next band. Since the stock has been “doing so well” lately, guess what this means? Yup: same conditions apply as above.
Amazon doesn't do annual bonuses. Stock refreshers are extremely rare as they say its compensated with stock's price growth. Base increments are also not guaranteed, but most get less than 1% generally. You only get a pay bump and stocks if you're promoted. You'll essentially see more money only if you're promoted or if you're close to finishing all your stock vests.
What do they do when you're close to finishing your stock vests?
Jesus Amazon sucks!