Judging from what an insider in the HR org told me, we're going to be hearing a lot of stories like this going forward. Apparently, Amazon scale is so large and their attrition rates are so bad that in some markets,
every potentially qualified candidate has already applied and failed an interview, or previously worked at Amazon and quit. As the adage goes, necessity is the mother of invention and Amazon seems to be at a point where it really needs to try everything under the sun to try to attract talent, given their extremely poor reputation.
With this said, from reading the article, this move seems reminiscent of Netflix's pay structure, in the sense of offering a higher cash portion but lower equity. Some people here already mentioned that this was already sort of the case with a sign on bonus compensating for the backloaded vesting structure. From my experience interacting w/ professionals outside the FANG bubble, equity tends to be a bit confusing, so I wonder if a move towards bigger cash portions is a way to try to lure people who wouldn't otherwise be looking at big tech as a prospective career choice.
What's also curious to me is that bumping up cash comp is in direct opposition to the trends from some other tech giants, where they are frontloading equity vesting. My sample size might just be small, but it feels like cash comp seems to correlate somewhat with bearish stock feeling and that frontloaded equity tends to correlate w/ bullish stock feeling. Would love to hear whether I'm off the mark here or not.
With this said, from reading the article, this move seems reminiscent of Netflix's pay structure, in the sense of offering a higher cash portion but lower equity. Some people here already mentioned that this was already sort of the case with a sign on bonus compensating for the backloaded vesting structure. From my experience interacting w/ professionals outside the FANG bubble, equity tends to be a bit confusing, so I wonder if a move towards bigger cash portions is a way to try to lure people who wouldn't otherwise be looking at big tech as a prospective career choice.
What's also curious to me is that bumping up cash comp is in direct opposition to the trends from some other tech giants, where they are frontloading equity vesting. My sample size might just be small, but it feels like cash comp seems to correlate somewhat with bearish stock feeling and that frontloaded equity tends to correlate w/ bullish stock feeling. Would love to hear whether I'm off the mark here or not.