AWS Compensation Explained

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Abstraction: How AWS structures and targets employee pay below market rate

Key points:

AWS targets paying 50-65% of market rate in total cash, relying on stock appreciation to reach target compensation; compare: Microsoft ~75%, Google ~95%, Netflix at top of market
Base salary capped at $160k (non-premium markets) or $185k (SF/NY); everything above is stock only
Stock grants bake in a 15% annual AMZN stock growth assumption per SEC proxy filings — if you believe that, you'd be better off taking a higher-paying job and buying AMZN yourself
Equity vesting is back-loaded (5%/15%/40%/40%); cash signing bonus bridges years 1-2 and is the only cash bonus employees receive
Year 3 is the implicit "retention decision": good performers get large new equity grants, underperformers effectively get a pay cut as a signal to leave voluntarily

Connections: Amazon · Aws · Equity Compensation · Salary Negotiation