Evaluating Amazon offer

Microsoft Roberto432
Feb 6 23 Comments

Negotiating an L6 SDE offer. Current L65 TC close to 270k. YoE: 10

Recruiter offered 160k base. 145+105 signon. 250 RSU. He insists this is a 330k TC Offer. They take shares at 30 day average which is 1630.

When I pointed out that his math only holds good for the first year, I was told Amazon factors in a 15% growth in stock as part of it's TC calculation. So, it looks like year 3 and year 4 will be lower comp. If stock remains at current levels.

When ppl post numbers for Amazon offers here, are you guys getting offer letters with $ number for the stocks or specific number of RSUs ? Did this translation account for any 15% growth ?

I find this 15% factoring in weird. It's one thing to say our company stock grows and use that growth to attract people. Here they are actually counting on the growth as part of the offer. There is no mention of what happens if the 15% projection doesn't hold.

Have more discussion with them tomorrow, and want to see if this is typical.

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TOP 23 Comments
  • Uber uber101
    This is hilarious. Offer is a lowball. Try to negotiate more on RSU and joining bonuses. This is not typical, recruiter will use all means to convince you even gaurantee promotion next year !!
    Feb 6 0
  • Amazon seattle700
    If the stock doesn’t grow 15% a year, you get additional stock to get you to the TC target of 330.
    Feb 6 9
    • Google yp112
      Let's agree to disagree. Google recruiter will also include the free food as part of comp policy. That doesn't mean I will do it in my calculations.
      Feb 6
    • Amazon seattle700
      Do you calculate refreshers beyond your 4 year grant?
      Feb 6
    • Google yp112
      Without refreshers my comp stays the same for 4 years. What happens after that is subject to performance.
      Feb 6
    • Amazon seattle700
      Except 15-20% of your base is bonus that goes to TC. Should bonus be counted as part of TC?
      Feb 6
    • Google yp112
      I see. Thanks for the explanation 👍
      Feb 6
  • Google yp112
    Amazon recruiter can factor in whatever they want. But that doesn't mean it is the right way to calculate TC. Its similar to saying you will work only for 3 days per week after 2 years for the same salary as you will get more efficient at your job.
    Feb 6 3
    • Amazon seattle700
      It’s the right way to calculate TC for Amazon
      Feb 6
    • Microsoft Roberto432
      OP
      Thanks yp112 and seattle700. Good to know that recruiter is not the one who is making this up. The 15% is still pretty bizzare through - I have never heard another company doing this,and don't really understand why Amazon thinks it's unique.
      Feb 6
    • Amazon seattle700
      Amazon has a weird comp philosophy. It kinda sucks in good years but it’s great if the market has trouble or is flat. It helps that Amazon stock has 10x’ed in the last few years. When we hit a recession, Amazon’s model provides more predictably in your comp. It goes to Amazon’s long term view of business. You can make plans around your overall TC (and count stock appreciation beyond 15% as a nice bonus, NOT a new TC). If you think of your comp as ~330 you will be pleasantly surprised when you make more and not face a massive cliff when your initial grant runs out if we hit a recession. In other FANGs, a down market means you will generally make less based on prior grants. At Amazon, you won’t see boundless stock appreciation gains, but you won’t see massive cliffs either. If you look at it long term and plan to stay at Amazon a while, it can be a very good thing.
      Feb 6
  • Amazon фoo
    Good offer for SDE3. Yes the 15% thing is standard. You might be able to squeeze out a bit more signing bonus, maybe a few RSUs but not many.
    Feb 6 0
  • Microsoft / Eng caltrop
    Isn't 270k a little low for L65 ?
    Feb 6 1
  • Oath waterfron
    Low ball offer . Don’t accept if they don’t meet your terms
    Feb 6 0
  • Expedia / Eng
    InTheDNA

    Expedia Eng

    PRE
    Microsoft
    InTheDNAmore
    I was told the same for SDE3 Offer.
    This actually does not make sense. My recruiter didn't give me a satisfactory answer on the same question.
    My offer did mention the no of shares in each year though.
    Feb 6 0
  • New Stuvy
    For first year it’s 160 + 145 + 5% stock (0.05* 250*1630) -> ~325K. What am I missing ?
    Feb 6 0
  • Walmart.com jmhk
    Had an offer from Amazon. Was given the same pitch about 15% yoy increase. Reg want happens if stocks don't increase as projected, I was told I'd be given refreshers to bring the TC to target point for that year.
    Feb 6 0
  • Salesforce whorizon
    Is there no annual / performance bonus at Amazon ?
    Feb 6 0