Free equity analysis
Amazon's RSU vesting is unique in tech with a heavily backloaded schedule: 5% in year 1, 15% in year 2, and 40% in each of years 3 and 4. This structure is designed to retain employees long-term. Amazon compensates for the slow start with sign-on bonuses in years 1 and 2.
Stock Price
$210.00
Closing price · Feb 27, 2026
Vesting Period
4 years
4-year, 5-15-40-40 backloaded
Vesting Frequency
Quarterly
How often shares vest
Cliff Period
12 months
Before first vest
Amazon's RSU vesting is unique in tech with a heavily backloaded schedule: 5% in year 1, 15% in year 2, and 40% in each of years 3 and 4. This structure is designed to retain employees long-term. Amazon compensates for the slow start with sign-on bonuses in years 1 and 2.
Amazon RSUs vest on a 4-year, 5-15-40-40 backloaded schedule with a 12-month cliff.
Example calculation based on 100 shares:
| Year | Vesting % | Shares Vesting | Estimated Value |
|---|---|---|---|
| Year 1 | 25% | 25 | $5,250 |
| Year 2 | 25% | 25 | $5,250 |
| Year 3 | 25% | 25 | $5,250 |
| Year 4 | 25% | 25 | $5,250 |
| Total | 100% | 100 | $21,000 |
* Based on Amazon stock price of $210.00 as of Feb 27, 2026. Actual values will vary.
25%
25 shares
$5,250
25%
25 shares
$5,250
25%
25 shares
$5,250
25%
25 shares
$5,250
Amazon vesting schedule based on 100 total shares
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RSUs are taxed as ordinary income when they vest. Amazon withholds shares to cover federal, state, and FICA taxes at vesting. The remaining shares are deposited in your brokerage account.
Let's walk through what happens when 100 shares of your Amazon RSUs vest at the current stock price.
Calculate gross value at vesting
100 shares × $210.00
= $21,000
Estimate taxes owed (federal + state + FICA)
$21,000 × 45%
= $9,450
Calculate net value after taxes
$21,000 - $9,450
= $11,550
This content is for educational purposes only and does not constitute financial advice. The information provided is general in nature and may not appl...
YourEmployeeStock.com is not a registered investment advisor.
Amazon also offers these equity compensation programs to employees:
Learn about Amazon's Incentive Stock Options program.
Learn about Amazon's Non-Qualified Stock Options program.
Amazon offers a Direct Stock Purchase Plan (DSPP) rather than a traditional ESPP. Unlike ESPPs, Amazon's DSPP allows employees to purchase company stock at market price with no discount. Purchases are made through payroll deductions, making it a convenient way to acquire Amazon stock, though without the built-in discount that ESPPs provide.
Get a free personalized analysis from our equity compensation experts
