Amazon is introducing an option to take 25% of RSU's for 2025 in cash locked in at the 2024 stock planning price (based on February - March 2024 average). The cash "vests" quarterly along with the remaining 75% of RSU's. Amazon sub-forum is up in arms because this means that one wouldn't see upside if the stock appreciates. The bar at Amazon is very low now so people don't understand that this: a) protects against drop in stock price like we saw in 2022 - 2023, and b) is entirely optional and you can continue to receive 100% of RSU's as stock if you please Would you take this option if offered at your company?
Amazon gave me an insane offer that I didn’t take, and I unfortunately went to another sh*t tech company, got laid off from there but would have made serious $ had I gone with AWS. The hiring manager seemed to have no soul and was visibly drained in interviews. Not sure if I dodged a bullet but sometimes I look at the offer just to know someone two years ago thought I was worth 3x what I get now. With stock appreciation would have been quite a bit more.
For someone in their early/mid-20's Amazon is a no-brainer unless the other offer is from Meta or a unicorn. For early 30's and on, then it becomes question as to whether it's a good idea or not.
Personally I don't think a person is ever too young to value mental health over money.
Sell and invest in nvidia
The fact that it’s completely optional makes this a non issue
In the era of AI, Amazon will be to AI that Microsoft was to cloud. Although engineering is shit, as a business, AWS still has a bright future. So definitely not taking the cash option
AWS is dying
Tona of people love Netflix because "cash is king"
Keeping rsu. Then coming back to troll the crybabies who took cash when the 2025 stocks are +15%.
My L6 manager also confirmed this option with us last week, though stated he didn't know the details around when the 25% lock-in would have to be decided (ie, in April 2024 would we have to decide?), and if the cash lock-in would effectively ensure you would always fall short of your "comp target" if the stock went up exactly 15% (since you only elected for 75% of your RSUs).
1. It must be decided in May 2024 2. Yes, you will fall short of your TCT but TCT is fake anyway
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I’d sell the stock anyways
yes but you’d sell at time of vest. the dollar amount isn’t determined until then. with this option you’re hedging against decrease