How does Amazon compensation change if company stock goes up or down?

New
HAOT05

New

HAOT05
Oct 2, 2021 18 Comments

I have read that Amazon changes your compensation based on if your RSUs go up or down. Could someone explain how this works?

Edit:
Assume

Base 100k
Stock 100k split 5/15/40/40
Stock increases by 100% in year 1. How does this affect stock vesting?

Tc 170 AWS
Yoe 0

#amazon #amazonaws #aws #rsu

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TOP 18 Comments
  • eBay / R&D
    !A-ZOnion

    Go to company page eBay R&D

    BIO
    TC or GTFO
    !A-ZOnion
    You will get equivalent amount of ๐ŸŒ if stock goes down. I confirmed this with one friend.
    Oct 2, 2021 5
    • eBay / R&D
      !A-ZOnion

      Go to company page eBay R&D

      BIO
      TC or GTFO
      !A-ZOnion
      On a serious note I would say this is a question for your manager not Blind
      Oct 2, 2021
    • New
      HAOT05

      New

      HAOT05
      OP
      I don't think it is team specific but i could be wrong
      Oct 2, 2021
  • Amazon
    IMentorU

    Go to company page Amazon

    IMentorU
    If it goes up, you get nothing.

    If it goes down, you get ๐Ÿฅœ and it's a year out.
    Oct 2, 2021 7
    • Amazon
      tKtW

      Go to company page Amazon

      tKtW
      They don't penalize you for the stocks going up AFAIK
      Oct 2, 2021
    • Amazon
      IMentorU

      Go to company page Amazon

      IMentorU
      They don't take away your money or your base, but they don't give you anything either. Effectively, the stock market subsidizes any raise or bonus you get.

      If it's year three or four, and you are vesting a lot of stock you got when you joined, it's entirely possible to see NOTHING on your two year PCS after a promo.

      What it often means is year three and four you're already making the next band up. And the promo is only there to avoid a cliff, not get a raise.
      Oct 2, 2021
  • Amazon
    rVrR28

    Go to company page Amazon

    rVrR28
    Whatโ€™s banana mean?
    Oct 2, 2021 2
  • DoorDash
    8bitByte

    Go to company page DoorDash

    BIO
    Eng manager
    8bitByte
    Each year Amazon calculates your target compensation which is determined by a combination of your original joining compensation ratio, your level, and your performance. As your tenure increases this biases towards just your level and performance.

    Based on that you are given a target in the pay band.

    So letโ€™s say for year 3 your target is $300K, and then you get promoted, so for year 4 itโ€™s $360K.
    Say you got your grants in Year projected to give you your target comp of $300K in year 3 and 4. Out of which you were supposed to get $150K in base and $150K in RSU.

    1. Now if stock goes up and your RSU is worth $240K in year 3 and 4. You make $390K in year 3 and get promoted, you get no new refreshers or raise, you make $390K in year 4 too after your promo. This happened because you made what the post promo target was with the existing grants. So no new grants are given for year 4. You get a new grant for year 5 for $210K - in year 5 you will make $360K unless the stock keeps rising. Effectively 2 years after your promo you would be making less money than the year before your promo

    2. Now say stock goes down. Then you will get refreshers to catch up to your target comp.

    Hope that clarifies.
    Oct 2, 2021 0