CompensationMay 26, 2019
AT&TDisUser

My first compensation discussion (Amazon SDE)

Hey guys, I have a compensation discussion with Amazon coming up on Tuesday and I have never done one before. What should I do to make sure I don't get lowballed? I also welcome any other advice regarding this discussion. Details: YoE: 2.5 Position: http://www.amazon.jobs/jobs/826010 Other offer status: HC at Google for L4, expected response by Friday, also should have a startup offer next week, but no current offers in paper. Current position: SE II at Att TC 98k

Software Development Engineer, Prime Wardrobe
Software Development Engineer, Prime Wardrobe
amazon.jobs
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Amazon qwertyup May 26, 2019

You have the advantage of an upcoming answer, so you can listen to the compensation and let them know you have to wait for the other offer before making a decision. This can help you not feel pressure to give them an answer right away and accept a low ball.

Amazon 🦎 gecko May 26, 2019

Right on. Congrats. Keep us posted on offer details and google response. Just negotiate up no matter the offer.

AT&T DisUser OP May 26, 2019

Thanks!

Amazon jefe_bezos May 26, 2019

Congrats! If you get past Google HC, your L5 offer at AMZN likely can’t compete as it will max at ~250 whereas Google can go up to ~300. But you’ll still be in a great position no matter what route you take. Either way, none of the companies are going to budge on their initial offer much if you don’t have other competing offers in hand.

AT&T DisUser OP May 26, 2019

I'm pretty sure I'm going to be on the lower end for Google due to my experience, but I have to make it though HC first. Thanks for the advice!

Amazon Prevail May 26, 2019

L5 at amazon is catch all for most hires (and is wide band )with experience and depending on performance it is possible you get higher l4 offer(most likely for your exp)

AT&T DisUser OP May 26, 2019

Good to know

Amazon bCxp50 May 26, 2019

For L5 SDE: the bottom of the band is $185k TC and the top is just under $250k TC. There's also a completely non-negotiable $160k (ALL levels) base cap. These numbers are for Seattle and most other US cities; the bands and base cap are around $25k higher in the two "premium cost" markets (SV and NYC). To negotiate with Amazon successfully, it helps to understand their compensation philosophy: like most other large tech companies, they have comp groups/committees that set the bands and targets. There's a "total compensation target" (TCT) that needs to be met by the sum total of ALL components of monetary/cash-equivalent compensation (base, signing, and vesting RSUs). Realistically, you'll probably get an initial offer somewhere around the midpoint of the band (~215k, for an SDE2 in Seattle), with a signing bonus and RSU grant of roughly equal size. It might be lower, though, given your relative lack of experience for an outside hire SDE2 (YoE and current employer). In any case, it's somewhat unlikely they will flat-out lowball you; there's a formal policy in effect that every outside hire should actually raise the bar and therefore be paid at or above the median for that level (hilariously absurd in practice, but that's the theory anchoring the policy). Recruiters are trained to shift the numbers around such that no matter what you ask for, the sum total adds up to (roughly) the TCT they want to give you, just in a way that psychologically appeals to you as a candidate. For example: if you push for a higher base, they WILL increase it (unless you're already running into the cap), but then they'll offset it with an (often subtle) decrease in base or RSUs. RSUs in particular are highly valued in Amazon's comp model: they're granted upon the assumption that they will increase in value at a rate of around 15% YoY (if this doesn't happen, you will--in theory--be topped off with additional shares as the year in question rolls around). This is especially significant for the on-hire grant, which is heavily back-weighted (so, 80% of your RSUs are expected to be worth somewhere between 45-60% more by the time they actually vest--THAT is the actual comp target that you don't see). You should also know that Amazon gives notoriously poor base adjustments and refreshers to most people, so take what you can get now, and know the stronger your upfront offer is, the weaker your annual raises will be. They'll find a way to push you towards the middle in the end. The only way to beat this is to negotiate on (and raise) the actual TCT, and moving that needle will usually require a strong competing offer and/or an SDM who really wants you. Good luck.

AT&T DisUser OP May 26, 2019

Wow thanks for the in-depth explanation! So for moving the actual TCT I'm unlikely to be able to do this in the initial discussion as this is my first offer. What would be a good way to approach this inital meeting then, if I expect to have more offers by the end of the week?

Amazon bCxp50 May 26, 2019

I would just be honest: tell them you're "waiting on final figures" from Google (be vague; don't say you have/don't have an offer or are going to hiring committee--just "waiting on final figures" or something like that). In reality, they know that if Google sends you a decent offer, they're likely to lose you--but they also know that Google is slow, so they'll have an incentive to try to get you a stronger offer as soon as possible (and they definitely can). Also, it's probably a good idea to have the recruiter set up a call directly with the SDM to discuss the possibility of the joining the team. Don't frame it exclusively around money--talk about the team, project and growth opportunities, talk about timelines and so forth. Show that you're genuinely interested. SDMs can pretty easily bump up a standard TCT offer somewhat with almost no bureaucracy--as long as it's not out of band or too much of an increase, it may only require a skip-level approval if any at all.