Higher base or Higher Equity?

Target / Eng
SeaTC

Go to company page Target Eng

SeaTC
Nov 19, 2018 28 Comments

With the recent slump of tech stock (FAANG, Oracle, MSFT) what would your preference be for salary TC?

Higher base and lower RSU?
Lower base and higher RSU?

Would you rather make
200k base with 20% bonus
or
160k base with 400 shares of Amazon not knowing if share price will tank?

Would it depend on whether or not it’s FAANG RSU grants?

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TOP 28 Comments
  • LinkedIn
    hdvkuscbkg

    Go to company page LinkedIn

    hdvkuscbkg
    What kind of dumb question is this? Amazon shares would have to go down an insane amount to not choose the shares.
    Nov 19, 2018 1
  • Intel
    Dhjct

    Go to company page Intel

    Dhjct
    Base - I’ve never understood people who want RSUs given you can buy shares with money if you want and the taxation is the same.
    Nov 19, 2018 1
    • OSIsoft
      Yqgdw

      Go to company page OSIsoft

      PRE
      OSIsoft
      Yqgdw
      But by giving up on 40k base you are getting 400 Amazon stock units. Now it's a great deal right?

      Basically it depends on what is the multiplier and what is the value of stock.
      If you are choosing between $X base vs $X worth stocks, then the answer is very obvious.
      Not so much if you are getting$10X stocks of good company.
      Nov 20, 2018
  • I’m all about that base (bout that base). 🤑
    Nov 19, 2018 0
  • Amazon
    Soxnsna

    Go to company page Amazon

    Soxnsna
    Here is the problem with the question in the first place. Getting a 400 share initial grant would make someone a very high level engineer at Amazon just based on stock price alone so it’s not a very realistic scenario. In addition, that 200 k base and 20% bonus would be on top of an equally lucrative dollar amount in another FAANG stock. There in lies Amazon’s issue with competing in the market, they bet that the stock will carry them over the other competitors in TC and it has for the most part. But if we see and ‘market correction’ people will be gone real fast. Uncle Jeff is a long term betting man and it’s quite literally his comp philosophy. Not going to change.
    Nov 20, 2018 7
  • Amazon
    azmix

    Go to company page Amazon

    azmix
    It’s a tricky question as it places you at 240K with the first option and 400K with the second.
    Nov 19, 2018 5
    • Target / Eng
      SeaTC

      Go to company page Target Eng

      SeaTC
      OP
      Ah. So in the case of a dollar figure of RSUs a lower base with a guaranteed dollar amount worth of RSUs is definitely better than “grant shares”
      Nov 20, 2018
    • Amazon
      Soxnsna

      Go to company page Amazon

      Soxnsna
      Average tenure is around 20 months. Many get all the cash from year 1-2 and split or are let go
      Nov 20, 2018