Amazon aims for total compensation, cash + stock.
So, the package for a typical SDE I will look like the following:
Salary: x
Starting bonus year 1: 0.2x
Starting bonus year 2: 0.15x
RSU grant is 0.6x, vesting 5/15/40/40 (4 years).
So when you add it up, assuming a constant stock price, you get:
Y1:1.23x
Y2:1.24x
Y3:1.24x
Y4:1.24x
So at a basic level the back loading of stock is just making up for the starting bonuses ending. Thinking more broadly, many employees get promoted within 2-3 years and the stock has generally gone up over time so the predictions after the 2 year mark aren't exactly set in stone.
So, the package for a typical SDE I will look like the following:
Salary: x Starting bonus year 1: 0.2x Starting bonus year 2: 0.15x
RSU grant is 0.6x, vesting 5/15/40/40 (4 years).
So when you add it up, assuming a constant stock price, you get:
Y1:1.23x Y2:1.24x Y3:1.24x Y4:1.24x
So at a basic level the back loading of stock is just making up for the starting bonuses ending. Thinking more broadly, many employees get promoted within 2-3 years and the stock has generally gone up over time so the predictions after the 2 year mark aren't exactly set in stone.