Amazon Equity FAQ

Amazon uses a backloaded 5-15-40-40 vesting schedule over 4 years with a 1-year cliff. You'll receive 5% after year 1, 15% after year 2, then 40% in each of years 3 and 4. RSUs vest quarterly (typically in February, May, August, and November), meaning most of your equity compensation arrives in the final two years.

No, refresher grants typically vest faster than your initial grant. Amazon awards refresher grants annually (often during Q1 reviews or promotions), and these subsequent grants don't follow the same 5-15-40-40 backloaded schedule, helping to provide more consistent equity compensation after your first few years.

No, Amazon does not offer a traditional discounted ESPP. While there may be a Direct Stock Purchase Plan (DSPP) available, it does not include the typical discount feature that most tech companies offer in their employee stock purchase programs.

RSUs are taxed as ordinary income at vesting based on the fair market value. Amazon withholds 22% by default for federal taxes, but you can adjust this rate. Higher earners should be aware that 22% may be insufficient, as the supplemental rate can go up to 37%, potentially resulting in additional taxes owed.

Yes, Amazon matches 50% of your contributions up to 4% of eligible pay. The company match vests after 3 years of vesting service (defined as 1,000 hours per calendar year). Amazon also allows mega backdoor Roth conversions through after-tax contributions of up to 90% of eligible pay, subject to IRS limits.

Only vested RSUs are yours to keep when you leave Amazon. Any unvested RSUs will be forfeited. Since Amazon's vesting schedule is heavily backloaded with 80% vesting in years 3 and 4, leaving before completing 4 years means giving up a significant portion of your initial grant.

Amazon typically offers 2 years of signing bonuses (ranging from $50k-$200k+ depending on level and role) paid in two installments during years one and two. These bonuses are designed to offset the low RSU vesting in your first two years due to the backloaded 5-15-40-40 schedule, helping to smooth out your total compensation.

No, Amazon employees are subject to trading windows and cannot sell shares at any time. You must comply with insider-trading window restrictions and blackout periods. Amazon encourages employees to sell RSUs immediately upon vesting to help diversify their investment portfolio and reduce concentration risk.