Amazon 15% expected RSU growth
Does Amazon still put that 15% YoY growth expectation in Stock while calculating Compensation? Majority of Amazon business are growing below 15% - See AWS and Retail, and that too for many Quarters. It is no longer a temporary thing. For people who don't know this, Amazon calculates compensation by Base + RSU*Growth_expectation. And they reduce stock by 15% for each future year, Year 1 - 15% reduction, Year 2 - 30% ...
Yep, They are still doing it.
What do you mean they reduce stock by 15%?
If Amazon gives you a 4 year grant at 100k/yr, the stocks they allocate you as part of that grant are - Y1 - 100k/current stock price Y2 - 100k/1.15xcurrent stock price Y3… Y4.. You lose out on the upside and may end up taking a cut if stock doesn’t grow 15%yoy
😬 Sounds like you never heard about the haircut. It doesn't stop at 15%
ofc
Is this true? Does any other big tech do this?
Not defending amazon practices but revenue growth has nothing to do with stock price growth though. Meta dint grew 400% in revenue last year, their stock did
Yep
Amazon tries to sell it as it's "ownership philosophy for compensation"... 🙄
Yes they are still doing that