https://www.theinformation.com/articles/amazon-lets-employees-swap-stock-grants-for-cash Would you take the same kind of offer -- if you're at amazon and have this option -- are you taking this option?? What do you think? Better to swap it out, or just keep?
Crash money is an army better yet a navy
That cash option is just nuts. Nobody should opt in. It uses the stock price in March 2024, that will be paid in the next compensation year (Apr 2025 - Mar 2026) 🙏
Terrible option. Stock is granted at 199 but cash 173? Dumb as shit
This^. Amazon’s compensation philosophy rewards you with stock at 173 to bring you up to your target compensation. However, your TCT is calculated as base + (stock@173 * 1.15). This bakes in an assumption that when the stock grows 15% by the time it vests you will be whole. If you choose cash, you get the value of the stock at 173, the same value it was awarded at but you lost that 15% that it could’ve grown. Basically, you’re taking a pay cut to get the cash today. You could argue that it’s safer to take the cash since the stock may not grow 15% from 173 by the time it vests, hence that makes it a good option for you.
It’s less because of the cash though. And the stock is $12 more today than $173. You’d have to think economic collapse is coming to make this decision. Amazon is well positioned to continue improving FCF and net income as well as low double digit or high single digit growth imo
Cherry on the top is that you will get cash at vesting interval i.e. every quarter. Why would I choose it unless confident that stock would crash. I can just sell all my stock during vesting which would be much better option than the cash
As many called out, the cash option is not converting 25% of your rsu to monthly payout. It distributes quarterly just as the RSU. In short, people should only opt in for this option if 1. Need the additional cash at those vesting dates And 2. you believe the stock price at that vest date will be below 173 It’s a horrible option for anyone who’s willing to just take a bit of risk with Amazon in their portfolio. Even if you don’t, just sell right away at vest
How this company scams its own employees is beyond me
How is this news?
This is just covering their ass. They lock you in at this price and next year they don’t have to pay 25% if the stock goes up over their projections. We all know it’s going up, would be dumb to take this option unless you think the stock tanks. They learned lol. I have close to 700 shares vesting this year at their $98 projection lol 🤣. Now it’s $185+
and if the stock tanks then you still won't get pay bump because you had selected cash option
Did you accumulate this over A few years or first offer? The recruiter was talking to me about an offer and she was like: depends on how many stocks I can get you 5,6 or 7 for example and I was like wtf!!! It’s L4 UK market 😂😂
It doesn’t make sense to take the cash option. The stock will go up in price most likely if you hold it. If you really need the cash, just sell the stocks.
of course you always take the cash up front
You would be surprised how few choose this option.
Not when it’s offered at 173