←back to thread

66 points colanderman | 1 comments | | HN request time: 0.705s | source
Show context
WalterBright ◴[] No.34889995[source]
In the various companies I worked for, my stock options were always underwater, if I recall correctly.

That's the risk with stock options.

I also know several Amazon millionaires who got that way via stock options.

That's the reward with stock options.

Remember when Boeing stock tanked after the 737MAX crisis? The employees complained that Boeing management still got their performance bonuses - because the shareholders demanded that those bonuses be based on multi-year returns, not just short-term previous quarter results. The employees complained that their quarterly bonus disappeared - because the union demanded it be based on the previous quarterly results.

1. be careful what you ask for

2. accept with grace when you get what you asked for

replies(3): >>34890059 #>>34890119 #>>34891328 #
1. colanderman ◴[] No.34891328[source]
See angarg12's comment [1]. TLDR, Amazon comp is largely comprised of RSUs, negotiated, granted, and adjusted as if they were base comp. The comp structure is not the same as options you'd get from a startup (which are rightly considered largely worthless).

i.e., by Amazon's comp philosophy, this is effectively a pay cut for anyone whose comp was negotiated/adjusted during the pandemic. Management not adjusting for this is likely intentional belt-tightening which Amazon has seen a lot of lately.

"Amazon elects to lower comp bands in concert with drop in stock price" might be a better title.

[1] https://news.ycombinator.com/item?id=34889838