How does Amazon compensation change if company stock goes up or down?
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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
comments
If it goes down, you get ๐ฅ and it's a year out.
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.
Based on that you are given a target in the pay band.
So letโs say for year 3 your target is $300K, and then you get promoted, so for year 4 itโs $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.