Total Comp at Amazon

Question

I just spoke with recruiter for an L5 position at Amazon. I know Amazon does the 5%, 15%, 40%, 40% vest schedule, but they made it sound like if you're TC upon hire is ex.270k, regardless of the vesting schedule, you will get 270k/yr for the 4 years, it just will be in the form of more bonus or base pay or something in the early years? Is this true? I assumed my TC would be much less the first year compared to the later years because I'd be getting much more stock later on (assuming a constant stock price). Can anyone let me know how that works? Thanks!

madscience · Accepted Answer

Amazon still does 5/15/40/40 with their vesting, but they offer a 2-part sign on bonus that gets paid out in your first and second year so that your TC stays consistent. The sign on bonus is meant to cover the fact that you vest so little those first two years.

PerpetuallyCurious · Answer

It is entirely possible that your TC will fluctuate, sometimes wildly. There are people on my team who are underwater on their TC and others who are riding share prices to the moon based on when they joined. In short, your TC is tied directly to the stock price no matter what you do. After year 2 it's very, very possible to make less than you were hired on for, though if you have a great manager, they should b able to make adjustments.

jeNr6kbwHe1KdkIhW1 · Answer

Your pay will only stay the same if stock prices go up. I worked at Amazon (not any more) and my annual TC was $155 in year 2. But the stock didn't do that well, so it was more like $154. The second year, my cash bonus was about $15k less than my first year. Meaning, my take home pay was about a grand less per month in year 2. In year 3, my monthly pay would be about $3k less than my first year. Sure, you do get the RSUs, but for me when I joined and left, the pay was steadily decreasing on a monthly basis. My manager was also not open to promo before 2 years. Comp and the work life balance caused me to leave Amazon. TLDR: your annual comp will likely stay sort of flat, or could be lower over time. You need to ensure your manager believes in promoting.

jayMandem · Answer

Roughly true

Total Comp at Amazon

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