Been seeing a lot of confusion on Amzn's comp structure so decided to do a PSA here. This way, people can effectively evaluate their offers Amzn's comp structure is determined by your job family, level, and geography. Each combination puts you in a band, which dictates how much you would make as a min and max. Within that band, you have an individual target comp level. This is what Amzn thinks your salary should be. Your target comp level raises each year based on your performance rating. Lastly, Amzn's comp philosophy is to get you to that target comp level each year through all the levers they can pull (base, sign-on, and RSU). Let's say your target comp is $200K a year (to keep the example simple, let's say no increases YoY). Amzn will pay you $200k through your base, sign-on bonus, and RSU. In terms of your first four years at the company, the first two years' comp will be primarily consisted of base + sign-on to reach $200k a year because majority of your RSU does not vest until year 3+. At year 3+, it'll be base + RSU. However, RSU being assigned is yours to keep, meaning if Amzn stock prices rises so much that your TC exceeds your comp band, you will not be penalized to keep you within the maximum band threshold. The upside associated with this comp model is if stock price depreciates significantly, you will be rewarded additional RSUs to ensure you reach your target comp ($200k). The downside is if stock appreciates beyond your target comp, you'll not get refreshes because you are already at the comp target. Furthermore, if stock rises significantly, you'll experience a cliff after 4 years because your total comp is already above your target comp, so when Amzn refreshes your comp for year 5 and beyond, it will only give you enough stocks up to your target comp level. For those who are wondering, twitch is owned by Amazon, so we are on the same comp system.
Thanks for this :)
Twitch have the same culture issues as amazon?
Does twitch have the toxic hire to fire and PIP culture as Amazon? Also are the interview pipeline separate? If you fail Amazon interview can you interview at twitch?
No PIP. Separate interview system as well.
The bit about stock price declining and getting additional grants to hit RSU target - I'm skeptical. I haven't seen the stock decrease since I've been at Amazon but they have always been pretty stingy with base increase and RSU grants that I've gotten. I've always been HV+ or TT and got promoted, but any RSUs I've gotten have been weak. With this comp structure, the rising stock price on unvested RSUs counts against you. There are no bonuses or refreshers as mentioned. So if stock price goes up then you are already "covered". No carrot. Only stick. If economy continues to surge you will be much better off joining another company that doesn't count rising stock price against you by calculating your TC against unvested. This post likely from a recruiter or HM desperate for new employees at a time where Amazon (and Twitch associated with it) is struggling to hire and losing top talent left and right
Lol, such cynicism. Not recruiter or hiring. I could care less about people joining amazon/twitch. Just being a good Samaritan Doing this because I saw a lot of misinformation spread around and it took me a year into my job when I had my first review to understand how amazon does its comp. Something I wish I knew when I was accepting the offer.
Yeah.. Amazon comp structure sucks and is why I'm leaving. I also wish I knew about it when I accepted my offer. You're not doing anyone any favors talking about it like it is a good thing. Lol
So my understanding from this is that there also aren't any annual bonuses based on performance??
Your comp can be adjusted via RSUs that's it. But those don't vest for 1 - 2 years
+100 everything written in here.
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sorry to hear that bro. I mean the last line 🥲
Misery loves company 😂. Tbh though, quarantine did wonder to Amazon stock, so it's not THAT bad