I’m on a 5/15/40/40 vesting schedule. I think it’s fine because it ends up being the same TC but more cash heavy. Tech stocks have been stagnant my tenure so I don’t mind that much.
Can you elaborate? I know Amazon has this extremely unequal vesting schedule. Are they now doing yearly comp targets and bringing you up to that target with cash?
Amazons “signing bonus” is just a way to equalize the total compensation over 4 years. It’s paid out monthly in the second year which doesn’t make it much of a bonus. This is as someone with 1 year of tenure. After the first two years folks get stock refreshers.
Every year money lose value due to inflation. If we assume 10%/year returns on average, the tricky vesting schedule saves the company 10%. On top of that, a big company deals with statistics, not individual employees: if on average an employee stays for 3 years, this saves another 10%. The best comp package is when you get the entire amount upfront and can invest it into some index and bonds.
