Amazon flex type of business
Sometimes, Amazon will pay out your sign-on bonus monthly, and you may not need to pay it back if you leave early (since you were only paid a prorated amount based on how long you were there). In that case, you’ll almost certainly have to pay back some or all of it if you leave before the end of your first year. Sometimes, Amazon will pay your Year 1 sign-on bonus out with your first paycheck in a lump sum. Do you have to pay back your sign-on bonus if you leave before the end of Year 2? More equity means a bigger shortfall in Years 1 and 2, which means they offer larger sign-on bonuses to help bridge that gap. Pretty flexible! And that’s especially true once you cross the base salary cap since they will begin adding a lot more equity. In Year 2, the sign-on bonus is smaller, but more of your equity will vest. The Year 1 sign-on bonus is typically larger than Year 2’s, partially as an incentive for you to join, and partially because their steep new-hire equity vesting schedule means your total pay in Year 1 would be pretty low without some sort of sign-on bonus. I like to think of the sign-on bonus as a way to help bridge the gap between your first paycheck and your first RSU vesting date, and Amazon does this more or less explicitly to help compensate for the steep vesting schedule they use for equity (RSUs) (see below). Sign-on bonuses, like equity, can range from a nice little amount into six figures. They don’t typically make large moves on base salary, but they will improve the base salary up to a point. How flexible is Amazon on Base Salary?Īs long as you’re under the base salary cap, they can be pretty flexible. More senior roles can command very large sign-on bonuses and RSU grants while offering a relatively modest base salary (when compared to some other big tech firms). If you run into the base salary cap, they’ll start adding equity and sign-on bonuses to improve the offer. The most unique thing about Amazon job offers is that they typically cap base salary at somewhere around $165–175k depending on division and geographic location.
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If you’re wondering whether the salary you’re offered is competitive, and levels.fyi are good places to start. You can’t know what company performance might look like in the future, so it’s hard to estimate how much of a bonus you’ll get or what your RSUs will be worth when they vest.Īmazon tends to pay competitive base salaries up to a point (see below). Base SalaryĪs with most job offers, this is the stable, predictable component that you can use to pay your mortgage or car payment. Let’s look a little closer at the main components of an Amazon job offer. The vast majority of the equity is paid out in years three and four, so there’s a pretty big incentive to stick around. This is what I was referring to above when I mentioned they incentivize you to stay for a few years. Notice that the Total is pretty consistent through the first four years, but the sign-on bonus and equity components vary pretty dramatically from year to year. * Equity (RSUs) Value is computed using a round number of $2,000 per share to make things easy
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Here’s an example taken from a modified version of a real Amazon job offer from one of my clients: Component They will often roll all these numbers together to describe the offer in terms of “Total Compensation” by year, but that can be tricky to understand thanks to some quirks I’ll describe below. Let’s look at an example to see what you can expect.Īmazon’s offers are unique, but have three standard components: Once you actually get through the Amazon interview gauntlet, you may receive a job offer. What a typical Amazon job offer package looks like The bottom line is that if you have a job offer from Amazon in a technical role, you likely have room to negotiate, and may have significant opportunities to increase your pay over the next several years if you’re willing to be a little creative. The trick is that you have to be willing to consider non-salary options and think deeply about how long you actually want to work at Amazon because their job offers are structured to increase in value over time, specifically after your second year as an employee.
#AMAZON FLEX TYPE OF BUSINESS SOFTWARE#
The key question to ask about an Amazon job offer is “How much can this offer be improved through negotiation?” In my experience coaching software developers through Amazon salary negotiations, the answer varies from “somewhat” to “a whole lot”. Amazon salary negotiation is unique because they use a one-of-a-kind structure for their compensation packages, and they are very focused on both attracting and retaining top talent for a long time.