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Candidate
Congratulations on getting an employment offer from Amazon! You have successfully navigated the grueling interview process, and are now faced with evaluating the compensation package.
Amazon’s compensation practices put a hard cap on cash compensation (Jeff Bezos’ salary has been capped at $81,840 for the past decade). Instead, Amazon uses equity grants—via Restricted Stock Units (RSUs)—and cash sign-on bonuses to achieve compensation targets. The more senior the role, the larger the percentage of total compensation is from equity grants.
- Understanding your equity compensation/RSUs
- Crafting an investment portfolio around your Amazon stock holdings
- Saving and planning for retirement
- Amazon.com 401(k) Plan check-up
- Taking advantage of Amazon’s employee benefits
- Buying a house in the Seattle area
Accepting a new job, leaving your current employer, and potentially moving to a new city, are big decisions. Although many factors come into play, the financial impact, both short and long-term, is often paramount. Wealth45 provides information and resources to help bring clarity and focus to these decisions and your overall financial life.
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New Hire
It’s your Day 1 as an Amazonian! Whether you are attending new hire orientation in the Doppler Building in downtown Seattle or in another city, you’re likely excited and a bit nervous for your first day.
Orientation provides a flood of information, and you may be asked to quickly make a number of decisions about benefits. As you begin this new chapter in your life, a number of important financial questions can arise.
- How should I be thinking about my initial pay package with a mix of salary, RSUs, and cash sign-on bonus?
- My RSU grant has a different vesting schedule than I’m accustomed to from other tech employers (i.e., backloaded to years 3 and 4) —how should that impact my financial plan?
- Should I contribute to the Amazon 401k plan? What about the 401k account at my old employer?
- Does Amazon match 401k contributions? What do other Amazonians invest in?
- Is there a tax advantage to enrolling in a high-deductible health insurance plan? How much should I contribute to my Health Savings Account (HSA)?
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Tenured Amazonian
Ever since Amazon’s humble beginning in Jeff’s garage, it’s been exciting, challenging, and exhausting to work there. Luckily, AMZN stock has provided big rewards—especially recently.
If you have been with Amazon for at least a few years, your RSUs have done very well. Life is good.
It may be a great time to step back, apply some more structured thought to your finances, and develop a solid plan for your family’s future.
- Given my large exposure to Amazon stock (via RSUs), how should I be thinking about my other investments?
- How will Amazon’s rising stock price impact my future compensation?
- As my highly appreciated RSUs vest over the next couple of years, am I prepared for a potential spike in my total compensation?
- Have my 401k investments moved from my target allocation? Should I be contributing more?
- Should I switch to a high-deductible health insurance plan for the tax benefit? How much should I contribute to my Health Savings Account (HSA)?
Wealth45 provides information and resources to help bring clarity and focus to these decisions and your overall financial life.
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