Amazon TC structure overly complex?
They have a really great sounding role on paper but the $ don’t add up. Any chance they’ll come back with higher numbers? I didn’t even interview. The compensation discussion made me bail. Can someone explain to me how the weird TC works? Why are they giving a bonus on the first couple years to make up for RSUs. Seems overly complicated. Recruiter said the COL is 40% lower than in the Bay Area and that the tc should appeal to me. I’m not buying it. Maybe if I had kids or wanted to buy a home. 401k contributions would take a larger percentage out of my take home pay. They cray cray 😜 Basically they are offering 20% lower tc and the base is like 25% lower. It’s a wash at best.
What level and how much were you offered?
It’s hard to share bc my role is too niche. Always hard to get salary data around my roles.
We all have that niche role misconception. We are all easily replaceable. If you decide to pass on this, someone else with the same niche role mentality will take the opportunity and run with it. Just $0.02.
“Recruiter said the COL is 40% lower than in the Bay Area and that the tc should appeal to me”
How much did they offer?
Op, your post structure is overly useless - without numbers.
Someone could easily answer the question about using bonuses to “make up” for lower tc in first couple years.
Amazon has TC targets for role and level. They use cash to make up for back loaded vesting schedule. For example 300k is the target. Year 1: 160 base + 5% RSUs + cash bonus Year 2: 160 + 15% + cash Year 3: 160 + 40% Year 4: 160 + 40%
You still didn’t answer google’s question. Without giving actual numbers, extremely hard to say
Never negotiate salary before they accept you. You have leverage after acceptabnce because acceptabnce rares are low. You have none before offer.
The comp structure makes total sense. Your first year TC is salary + bonus + 5% of overall RSUs. Second year is the same but 15% of RSUs. Third and fourth year you get 20% of RSUs every 6 months. For future grants you can expect to receive the whole amount vesting every 6 months over two years. Focus on your first your amount - that is roughly what Amazon wants to pay you. Given the stock markets history, a lot of folks made way more in year 3 and 4 due to the run up in price. Expect it to revert back to what you made in year 1 (plus a modest bump each year). Why does Amazon do it this way? I think because it attempts to focus you on ownership and the long term (why the stock is back loaded). The first two year bonus is to help bridge cash flow gaps
Thank you so much. If I can’t understand the comp structure then maybe I’m not smart enough to work there lol.
You’re smart enough. It wasn’t apparent to me either when I first got an offer but over the years I’ve understood it. Other FANGs can be as complex (I.e. Google used to have a 1 yr cliff for your first stock vesting so without a major bonus you would see a major cash flow dip year 1...they got rid of the cliff but then took away first year grants of new RSUs...unless you joined before a certain date. Netflix has all cash or stock or an optional split. Facebook is similar to google but without the first year wait for new RSUs. Each company is different and complex in their own way around comp.)
“Basically they are offering 20% lower tc and the base is like 25% lower. It’s a wash at best.” Yup!! And considering the hours you will spend at Amazon, it is a pay cut in terms of how much you get paid per hour. This is the most likely case.
It’s all about stock. If the TC they’re offering in year 1 is less, then keep negotiating.
Why don’t you tell us the package and we will tell if they’ll go higher
He didn't interview. Not sure why not. He still doesn't know if he's worth it.
I submitted my resume with no referral and was contacted within 90 minutes to schedule an hour interview. They asked for my comp requirements. I gave them my current tc in the Bay Area. Figured lack of state income tax plus lower COL would be enough of a bump. Recruiter arranged a call “to explain how total compensation works” at amazon before proceeding with scheduling the interview. Told her tc is too low.