Does Amazon maintain your TC after 4 years?
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? :)
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.
That’s when you move on?
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?
Doesn’t amazon have annual raises ?
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.
I never knew amazon raises are 1-2%. That’s pretty bad.