Let’s say your TC is $200K with $120K base, $40K bonus and $40K equity. Now $40K equity once vested is subject to whims of the market. Then how does Amazon make sure you comp stays $200K?
Especially if you've negotiated and managed to get higher than average for your level in the initial offer, they won't give you anything if the stock goes down. They have a minimum TC for each level (which is very low in comparison to the market) and if your TC drops lower than that because of the stock price change, then they will adjust it to that minimum. But as I said the minimum is a joke, so expect to get nothing.
I have posted this message in other forum .. posting it here since it is relevant .. I always wonder how FAANGM manage to pay so high. Even newborns talk about $200K TC when it comes to one of those FAANGMs. Is that really sustainable? Huge OpEx.
Newborns not so much.
Why not? Most of these companies (or all?) are profitable. That means after accounting for expenses from TC, the companies still take profits. Furthermore, some companies in the list have $500k profit per employee
If you mean for within the year of the stock lowering, then you get nothing to make up for it. For example, if in 2018 you are given 100 shares for 2020, but 2020 comes and they’re worth much less than what they were in 2018, then tough luck, you’re an owner like everyone else. However, in 2020, they will give you more shares for 2022 than they did for 2020.
🍌 🍌 and the opportunity to sweep the floor for a day.
Hi TC police!
Doing the needful.
It’s absolutely dangling the carrot, golden handcuffs, whatever you want to call it. Amazon will not fill the TC bucket with more stock to make someone shoe again unless the stock goes down and stays down below a certain point where people are under water for at least a year if not longer. They don’t make quick knee jerk decisions on comp, it’s quite conservative and always has been. There have been 2 such instances where this correction has been done and the last was either 1999 or 2001. It’s been a looooong time.
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They claim they will provide more equity. My guess is that they simply won't though and tell you that you are an owner of the company and rise and fall together.