why Amazon’s stock vesting schedule seems evil?

Microsoft saulgoodmn
Sep 14 22 Comments

MSFT usually have 1 year initial vesting - meaning after 1 year you get 25% (and nothin before that) and then it vests linearly for the next 3 years with 3 month periods
FB starts vesting after your first 3 months! and continue linearly - pretty amazing, right?
but Amazon, if you don’t stay there for three years, you loose pretty much most of the stocks
why is that? pure evil? any other explanation than trying to lock you in?
didn’t know this until recently got an offer from Amazon, then the hiring manager danced around it

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 TOP 22 Comments
  • Google hoppg
    Because you will want to leve after a year but the big pot of money will keep you there.
    Sep 14 3
    • Microsoft saulgoodmn
      OP
      How’s the vesting schedule at Google?
      Sep 14
    • Google ehjcer
      No waiting period and the grant vests monthly
      Sep 14
    • Monthly or quarterly. But evenly either way.
      Sep 14
  • Amazon / Eng AMZNBucks
    How is it evil dude, I have the same TC each year. You get a signon bonus to match your stock grants and the tech bull market isn't there anymore to even want stocks over cash rn. Plus if you badly want the stock, use the cash you get to just buy stock in your portfolio. How tf is it evil lol unless you don't understand the comp structure

    It's too late for that massive stock boom to reoccur, the one that did the last few years. I'm sure price will remain relatively stable in the next few years
    Sep 14 9
    • Ness Technologies __|__
      What happens after 4yr does TC stay the same ?
      Sep 14
    • Amazon goldfish_
      You are fucked after 4 years cliff unless you get promoted (and get significant growth in TC).

      That's the case with all the companies except those that give guaranteed refreshers every year
      Sep 14
    • Ness Technologies __|__
      So after 4yrs if you are still at the same level as hired you will get ur base or you get managed out ?
      Sep 14
    • Qualcomm NqAf57
      After the four year cliff, the best option is to quit and go somewhere else for another big sign-on grant.
      Sep 14
    • Amazon goldfish_
      You won't be managed out. You will have your base plus additional stocks granted during annual reviews.. Its a small number though.
      It's best to leave unless you see promotion coming soon
      Sep 14
  • Amazon goldfish_
    your TC is constant across 4 years

    Amazon compensates less stock grants by giving joining bonus (paid monthly). It is better for employees in cases when when they leave just before vesting time
    Sep 14 0
  • New cxzvm
    Again, compensation structure is different. So it's not an apples to apples comparison.

    Say TC is 200k with base 100k
    At Amazon, this might be a possible cash vs stock split for 4 years (these are not correct numbers, used just for representation's sake)
    Cash: 100k 50k 0 0
    Stock: 0 50k 100k 100k

    Microsoft:
    Stock: 100k 100k 100k 100k

    Total non-base comp is still 100k even though Amazon stock doesn't vest much after first year.
    Sep 14 2
    • Amazon AppleCake
      You forgot the signing bonus that Microsoft employees also get.
      Sep 14
    • New cxzvm
      Yes yes, didn't include for the sake of simplicity.
      Sep 14
  • Amazon cirnfhx
    ???
    bad trolling attempt you obviously don’t have an offer.
    it’s not evil, it’s better than MS because there is no first year cliff
    Sep 14 0

  • Flagged by the community.

  • Google / Eng
    Really?🤨

    Google Eng

    BIO
    I’ve worked at both startups and big companies.
    Really?🤨more
    It’s smart because despite your inflated ego you get better over time at a company. You should get paid as such. The biggest issues with google and other flat stock companies are you usually hit a cliff at 4 years, because your initial grant finishes and the second one is small because you hadn’t dont anything considerable yet.
    Sep 14 0
  • New / Eng
    xoogler420

    New Eng

    PRE
    Google
     xoogler420more
    "why is that? pure evil?"

    Pretty much.
    Sep 15 0

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