Does that not cause people cash-flow problems? In my experience things like mortgages are based on how much you're guaranteed to be paid and if you just say you hope to get a bonus and you hope your shares are worth something they won't be happy.

If your total compensation is something like a quarter of a million as an Amazon engineer does that mean you have to live much more frugally for your first year until you get your bonus and shares?

Yes, but this is offset by Amazon's sign-on bonus. According to online sources, Amazon's stock vesting schedule is:

5% in year 1, 15% in year 2, 40% in year 3, 40% in year 4.

This is unfavorable compared to other top-paying tech companies, however Amazon may offer a sign-on bonus for years 1 and 2 to help even out the total annual comp.

> Yes, but this is offset by Amazon's sign-on bonus.

Aaah, I see how it all works together then.

Not really, that offsetting by sign-on bonus is a lie too: other companies not only offer a higher sign-on bonus, but also monthly or quarterly vesting in even chunks.

It’s not “a lie”. They tell you the total comp target and it’s made up of salary+bonus+RSU. You either accept it or you don’t.

The idea that it balances their compensation out versus the rest of FAANG is a lie though.

A lie by who? Amazon?

Yeah, Amazon's compensation structure is really bad compared to other FAANG companies. Perks are worse (pre-Covid-19, at least). And most people seem to think work-life balance and company culture is worse.

On the other hand, AMZN stock has done much better than Facebook, Google, Apple over the last five years, so at least they have that.

> On the other hand, AMZN stock has done much better than Facebook, Google, Apple over the last five years, so at least they have that.

Yes, but you don't have to work at AMZN to buy their stock. And RSUs are just another name for 'cash compensation, that was immediately spent on buying company stock'.

True. But if your target comp over the first four years was hypothetically $900K based on salary+bonus+RSUs and the stock went up significantly during that time you would end up making more. Of course if the stock goes down....

I think I heard that Amazon bases future grants on the assumption that the stock price will increase 15%. But I can tell you that my salary+bonus+RSU when they made an offer was based on the stock price not changing.

Amazon’s sign on bonus is paid and vests monthly if it’s for a substantial amount.

No. My mortgage looked at taxes, which show the value of shares I received each year (and bonuses). Plenty of people earn income outside a salary - think of a successful sales guy, where most of their income is commissions.

The bank wants to sell you a loan. They aren't going to intentionally leave money on the table by intentionally ignoring what an RSU is

The banks include RSUs if you have two years of history of receiving them. Otherwise they ignore the stock plan.

The same goes for the sign on bonus, they ignore the bonus portion of comp unless there is two years of history and an expectation that it will continue.

Source: I have been at Amazon for 2.5 years and checked with a LOT of banks.