Amazon RSU reduction
Can someone explain what is actually happening with the supposed RSU reduction for Amazon employees? Does that essentially mean there's no refresh for this year? If so, when will amazonians see a TC drop? #tech #amazon #amazonaws
In this pay cycle. For 2025, we did not get much stock( not enough stock to even keep up with the TCT) We loose the advantage in long run when the stock goes up. For 2024, we got TC as expected. Where they assumed stock will grow by 15% then what it is now. For 2023, no new stocks and with stock price drop we are no longer matching the TCT. Every pay cycle starts in April so for the next 12 months we are working below expected pay. Starting next year, if the stock doesn’t grow by 15% we are again be underpaid.
Amazon's entire comp philosophy is centered around Amazon hedging their risk through employee. They offload any market on risk on employee. Their policy will change every year, what will not change is that employee bears full market risk
This is how haircuts works. Amazon typically gives out RSU awards for the year 24 and 25 with the assumption that price goes up by 15%. And for the year, 25, which is 2 years out, there some thing called haircut on top of 15% YoY in increase assumption, which previously was 5%. But this year the haircut is 25%. By doing this Amazon is ensuring, they don't overpay employees way over the market for the year 25, if the stock price increases more than their forecasts.
Essentially amazon gives kind of refreshers (which is based on assumption of 15% growth of the stock). This is given by calculating a target pay. Let's you are an L5 making 350k this year and 250k next year, and you target comp is set at 285k then you would get additional 35k worth of RSU(less the 15% growth) All this is done for 2024 (which will vest in 2025) not for cureent ongoing year cycle.
The only thing that's going up 15% yoy is inflation
This is the ultimate broken promise is a line of bs from our comp plans. We get all the downside and none of the upside. Really living up to the new LPs around here.
If you do not get whole with the 15% growth you can at least count on the free bananas
L7 SA Manager, TC dropped to 400K.
Your allotted 2025 RSUs won't be granted this year, 2024. This means you'll lose out on any stock appreciation, if it grows. This typical Amazon screwing employees. It's the Amazon way.
Didn't understand,the grant will be this year and 1st vesting will be 2024. So no RSU grant 2023 review cycle? If some has last vesting in 2023 and not in 2024 then they lose tc. Else if someone has grant till 2024, and none of the lot expires in 2023 then tc should be fine I guess. Or there's something I'm missing