Cash is king. Most companies make you take extreme stock market risk when you start and you can end up in a Meta style stock crash right after you join cutting your TC by 40% instantly with no recourse on your part to renegotiate comp. At Amazon you are paid first 2 years mostly in cash which guarantees your comp. The stock starts to vest primarily in year 3 thus it is given longer time horizon to mature, which shields you from sudden company stock crashes. TC 310k
How much is the tax on that cash
Also TC?
Hi Beth! Long time no talk
Ok sweety. This is going to go on your record unfortunately. HR will call in the morning
40% crash is nothing
DOCU baggies were down as much as 75% so I suppose in that sense it ain’t bad 🙄
*Laughs in TDOC*
But it has no upside period.. I hve been here for 7 years and in my time I have always seen the 2 year stock move much more than potential 2-year sign on
Agreed it is better to be backloaded than front loaded. From employee perspective you want cash if things go bad and don’t worry about vesting. If things go well, you locked your price so backloaded stocks work very well.
Aka, lock the candidate for longer period by not vesting the majority or equal amount of stocks in the first two years. So that they can prevent the candidates quitting amazon atleast for the first two years ?💁
The candidate is getting an equivalent amount as a 2 year split sign on bonus. I see no downside here. Literally no reason for candidate to feel pressured to stay just to vest more in stock.
Still higher than MSFT comp
Now thats real flexibility/ financial power yo
But getting rsus locks in the price today. Say you get 800k in 4 years, now you are invested fro 800k at todays price. With netflix to create same portfolio you need to put down 400k today (assuming you use 50% margin) or go options way(guaranteed to lose money) Rsu s is much better in an up market. Tricky piece is you don’t know when market will be up. Same problem if you invest yourself though
That's amazing. Stay there.
This is the plan
Hope you dont change the plans later and miss the cash