Amazon staff might get paid 50% less because shares have fallen so much

Re:Amazon staff might get paid 50% less because shares have ... by anonuser123456 on Tuesday February 21, 2023 @10:53PM (#34891428)

The distinction is super meaningful in this context.

- RSU compensation is used to prevent wage stickiness. It lets a firm pay really high wages when times are good and claw back that comp when times are bad.

- Stock options are a way to bait the gullible into working for low wages. Options cost non-hypergrowth companies nothing. As such, it doesn’t stop them from getting over the tips of their skis via labor costs. There is nothing to claw back / reduce.

So when the economy hits a snag, RSU heavy companies have a built in cost moderator whereas options based companies have to layoff.

[ Parent | on HN ]

Re:Amazon staff might get paid 50% less because shares have ... by adam_arthur on Wednesday February 22, 2023 @12:24AM (#34891962)

RSUs cost the issuing company nothing from a cash perspective too. They simply create the stock out of thin air, diluting existing shareholders, e.g. stock based compensation expense.

While no affect on cash on hand, it does negatively impact GAAP earnings.

[ Parent | on HN ]

Re:Amazon staff might get paid 50% less because shares have ... by hamster77 on Friday February 24, 2023 @12:03AM (#34921005)

Grating RSUs results in fixed accounting for companies - stock-based comp expense doesn’t fluctuate with stock price unless there are features that result in variable accounting instead (which most companies avoid)

[ Parent | on HN ]