How does Amazon maintain the TC with equity part of the TC being variable?

Cisco
AMZNgeek

Go to company page Cisco

AMZNgeek
Nov 19, 2018 14 Comments

Let’s say your TC is $200K with $120K base, $40K bonus and $40K equity. Now $40K equity once vested is subject to whims of the market. Then how does Amazon make sure you comp stays $200K?

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TOP 14 Comments
  • They claim they will provide more equity. My guess is that they simply won't though and tell you that you are an owner of the company and rise and fall together.
    Nov 19, 2018 0
  • Cisco
    AMZNgeek

    Go to company page Cisco

    AMZNgeek
    OP
    I have posted this message in other forum .. posting it here since it is relevant ..

    I always wonder how FAANGM manage to pay so high. Even newborns talk about $200K TC when it comes to one of those FAANGMs. Is that really sustainable? Huge OpEx.
    Nov 19, 2018 2
  • Amazon
    BCS

    Go to company page Amazon

    BCS
    If you mean for within the year of the stock lowering, then you get nothing to make up for it. For example, if in 2018 you are given 100 shares for 2020, but 2020 comes and they’re worth much less than what they were in 2018, then tough luck, you’re an owner like everyone else. However, in 2020, they will give you more shares for 2022 than they did for 2020.
    Nov 19, 2018 4
    • Amazon
      BCS

      Go to company page Amazon

      BCS
      It is too true. Q1 2019 grant can only have 2020 and 2021 RSUs, no matter how low stock goes. If the stock has appreciated more than 15% over the prior year then it won’t include RSUs for 2020 either.
      Nov 20, 2018
    • Amazon / Eng
      no you

      Go to company page Amazon Eng

      no you
      I've definitely received stock grants for same year at annual grant time.
      Nov 21, 2018
  • Vertivco / Eng
    FastPapuan

    Vertivco Eng

    PRE
    YouTube, American Bureau of Shipping, Facebook
    FastPapuan
    🍌 🍌 and the opportunity to sweep the floor for a day.
    Nov 19, 2018 2
    • Dell / Data
      Sabuu

      Go to company page Dell Data

      Sabuu
      Hi TC police!
      Nov 19, 2018
    • Vertivco / Eng
      FastPapuan

      Vertivco Eng

      PRE
      YouTube, American Bureau of Shipping, Facebook
      FastPapuan
      Doing the needful.
      Nov 19, 2018
  • Amazon
    Soxnsna

    Go to company page Amazon

    Soxnsna
    It’s absolutely dangling the carrot, golden handcuffs, whatever you want to call it. Amazon will not fill the TC bucket with more stock to make someone shoe again unless the stock goes down and stays down below a certain point where people are under water for at least a year if not longer. They don’t make quick knee jerk decisions on comp, it’s quite conservative and always has been. There have been 2 such instances where this correction has been done and the last was either 1999 or 2001. It’s been a looooong time.
    Nov 20, 2018 0