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by thor24 1808 days ago
To be absolutely clear, comp is not based on stock appreciation. You get your grant (aka no. of stocks/RSUs) that vest at some cadence. By the time you vest a tranche and share price has increased is an added bonus (though generally people in tech think 4x in 4 years is their birth right.)

As for Netflix, they do give you option of choosing to split your salary every year i.e all cash, all options, some cash and some options as you see fit.

3 comments

> To be absolutely clear, comp is not based on stock appreciation. You get your grant (aka no. of stocks/RSUs) that vest at some cadence. By the time you vest a tranche and share price has increased is an added bonus (though generally people in tech think 4x in 4 years is their birth right.)

This depends on the company. My understanding is that Amazon does keep stock price in mind when doing vesting of stock. If your personal projected comp is above the "intended" level (due to a large share price increase), your stock award in a given year will be smaller.

So your stock vest in year 3 might be smaller because growth was high (or your initial offer was above-market). Google and Facebook don't do this. Each year is modeled independently. Microsoft also models years independently afaik, but their stock vests slightly differently.

When you negotiate with amazon they do try to bring stock appreciation into it. It went like this:

I asked for X comp, say 100K total for 4 years, including stock. The recruiter calls me back, says she got the total I wanted, I write down the numbers and it totals to 90K. I ask her why the math does not check out and the answer was that the 'missing' 10K is the projected stock growth.

Haven't seen anything like that in other negotiations.

This is particular to amazon and is a dick move any way you put it.
Is the added bonus of increased share price required for the comp to be similar to an all-cash Netflix comp though?

Or is it still competitive without taking such appreciation into account?

I think still competitive without the appreciation. Amazon is the only employer which takes appreciation into account. Most others don't.

Please correct me if I am wrong here.