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Ask HN: I'm an SDE1 at Amazon. Is no compensation adjustment this year typical?

27 points by amzn_throwaway1 ↗ HN
Last year, after the annual performance review, I got a 3% raise and stock to vest in 2017. This year there was no change to my compensation. My boss said that because the stock has been doing well, many people were over the compensation targets that Amazon had set for them and would not be getting an adjustment. Is that typical for Amazon, or for the industry in general?

9 comments

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amzn-tway8
Yes. Typical for Amazon. Usually low/mid performers can expect a small increase, but because of stock last year most will get no adjustment this year
amzn_throwaway1
Thank you. What is the compensation difference when you're promoted from SDE1 to SDE2. I've heard it's something like 15%, but I've also heard people say that they didn't get raises when they were promoted for budget reasons.
amzn-tway8
10-20%. There are those that get the promotion without the pay, they are in orgs than need warm bodies to stay to keep the lights on. Get out of them.
noonenohow
The answer is maybe. The user amzn-tway8 is actually referencing two distinct cases.

Case 1, Total Compensation. Amazon does "total comp", which is your base plus RSUs. Suppose your grants were rather large, or "timed" at a downswing for AMZN. Your current vesting schedule for 2016 could exceed the planned target & salary band. I find no base adjustment whatsoever mildly surprising. But I would not be shocked.

Case 2, performance based compensation. As amzn-tway8 also mentioned your yearly compensation at amazon is related to your annual performance review. Read and understand the definitions of "Performance Rating" and "Leadership." Your manager will have discussed this with you in your annual review. Average and exceptional performance reviews will yield relevant compensation adjustments. Individuals with a very low performance review can expect a low, or possibly no, increase.

amzn_tway_54321
I have a similar question. I am in the process of transferring teams; does doing so during comp adjustment time mean that I will not get an adjustment this year? I got a good rating (exceeds/solid strengths) from my previous manager and am scheduled to start on my new team in early May.
noonenohow
No. Transferring teams should have no bearing on compensation for the year. I would not be concerned in your case. Changing managers more frequently than once per year is a concern. At those rates your managers will be challenged to provide career planning or relevant reviews due to lack of continuity.

PS: The two of you, and others reading this thread, TALK TO YOUR MANAGEMENT or senior individual contributors. These questions are all very reasonable and should be part of your ongoing conversation.

amzn-336495
Why don't you quit? Serious question. Your boss says the stock is doing well and that's a reason to screw you on pay? Does anyone believe this shit? Compensation target is beyond stupid. At best it is a deferred compensation plan Amazon has manufactured to use in screwing employees while also boosting their income statement. RSU forfeitures at Amazon are in the billions. Hundreds of millions of their EBITDA can be explained by RSU forfeitures which Amazon controls the timing of.