Does Amazon maintain your TC after 4 years?

Amazon / Eng
deng

Amazon Eng

PRE
FactSet
dengmore
Aug 9, 2018 13 Comments

As stated in the subject, is your TC maintained even after all your stocks vest or your TC suddenly decrease after the 4th year? If yes, what if the stock raised a lot (like nowadays)? Do you maintain your last TC, or the one where you started? So with this example:

Base Salary: $100,000
Sign-on bonus: $25,000/$20,000
RSUs: 40 (assume the stock is worth $1900 1st year, $2000 2nd year, $2100 3rd year, $2200 4th year)

This means your TC for:

Year 1: 100,000 + 25,000 + 2*1900 = 128,800
Year 2: 100,000 + 20,000 + 6*2000 = 132,000
Year 3: 100,000 + 16*2100 = 133,600
Year 4: 100,000 + 16*2200 = 135,200

Assuming you are not underperforming, but also not outstanding, does Amazon try to maintain your total compensation? Or you basically should try to find another job? :)

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TOP 13 Comments
  • VMware papa-razi
    Doesn’t amazon have annual raises ?
    Aug 9, 2018 5
    • Amazon / Eng
      deng

      Amazon Eng

      PRE
      FactSet
      dengmore
      OP
      It does, and this is what I am trying to learn about. I know that in your first two years, you pretty much get nothing, because you have the sign on bonus. But after the 3rd year, they start giving you some stocks to be vested after the 4th year. As for the base salary increase, it is minimal, like %1-%2.
      Aug 9, 2018
    • VMware papa-razi
      I never knew amazon raises are 1-2%. That’s pretty bad.
      Aug 9, 2018
    • Pandora ex-rdio
      Base salary is capped. It’s all about RSUs refreshers.
      Aug 9, 2018
    • Facebook public
      No, amzn penalizes employees for stock growth.
      Aug 9, 2018
    • Pandora ex-rdio
      Yeah sure with the target comp. I mean that if they need to increase your comp, they are likely to do it via RSU.
      Aug 9, 2018
  • Apple / Eng cho Chang
    They use a comp target model and give u enough of a raise + RSU refresh to maintain ur TC based on initial grant price.

    However if the share price appreciates hella, then ur 5th year TC will be less than 4th year because u would be way above ur comp target for ur 4th year.
    Aug 9, 2018 6
    • Pandora ex-rdio
      That’s when you move on?
      Aug 9, 2018
    • Amazon / Eng
      deng

      Amazon Eng

      PRE
      FactSet
      dengmore
      OP
      OK, what if the stock price drops a lot? Will they still maintain your initial grant? In other words, in the example above, if the stock price suddenly drops to $1000, will you start earning less than the first year in your 5th year?
      Aug 9, 2018
    • Apple / Eng cho Chang
      If the price drops, then they make up for it by giving u larger refreshers so that u reach ur comp target.
      Aug 9, 2018
    • Amazon / Eng
      deng

      Amazon Eng

      PRE
      FactSet
      dengmore
      OP
      I see. What about if you get promoted? Surely they shouldn't send you back to your initial grant, no?
      Aug 9, 2018
    • Amazon Flynn
      Then your target changes
      Aug 9, 2018
    • Amazon
      Jeff B.

      Amazon

      BIO
      I love Rocket.
      Jeff B.more
      The stock price hikes so much that I didn’t get any stock grant on my promotion.
      Aug 9, 2018

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