Then Amazon recruiter wants to "match" that, so 300 * 4=1200k over 4 years.

Base pay is maxed at 160 (until today's announcement), so 1200k-(160 * 4) = 560k to come up with with stocks and cash bonus.

Let's say Amazon 30 day moving average share price during negotiation is $1200 a share

So now recruiter must make math such that:

- TC stays relatively flat. On year 3 & 4 you get 40% of award, but only 5% year 1 and 15% year. (so a cash bonus to offset year 1 is ~35% of grant amount, and cash bonus offset year 2 is ~25% of grant amount)

- TC assuming 15% growth of stock

So, they'll offer you 220 units:

Year 1:

with only 5% * 220 * 1200=$13k from RSU, you need (300-160-13)=127k cash bonus , now your TC year 1 is 300k.

Year 2:

15% * 220 * 1200 * 1.15=46k from RSU So cash bonus of 94k.

Year 3:

40% * 220 * 1200 * 1.15^2=140k RSU that's 300k of TC

Year 4:

40% * 220 * 1200 * 1.15^3=160k RSU That's even more, 320k TC \o/

So all the math here is done using fictional share price that grew 1.15^n for each year. But in concrete, your offer says 220 units. If Amazon grew much more than 15% a year, on year 3 you're still making 40% * 220 units, no matter what the share price is.

But the final offer is:

160k / year base, 220 units over 4 year with 5%/15%/40%/40% vesting, and 127k cash bonus year 1 + 94k cash bonus year 2.

Amazon is one of rare FAANG where the RSU offer is given in share count in offer itself, not in $.

Yes, exactly (less with compounding, about $370k -- see sibling thread).