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The other thing to note is that much like a warranty designed to cover your machine up until a month before it's expected to fail, the hell they unleash on thei

by wfo 11y ago

The other thing to note is that much like a warranty designed to cover your machine up until a month before it's expected to fail, the hell they unleash on their employees means most don't make it to 3 years so for most of them vesting doesn't meaningfully exist and it's just a lie told to entice potential new victims.

pm24601 11y ago
Agreed: per the article: "There's evidence that lower-paid workers aren't widely participating in Amazon's 401(k) plan—and that creates a problem for high earners at the online retailer. For a plan to maintain its tax status, it can't disproportionately benefit what the IRS calls "highly compensated employees." A lack of participation by the rank and file means higher-paid employees can't max out their contributions to the IRS limit and may even get some of their planned savings back. Every year since at least 2011, Amazon has had to repay amounts "withheld and contributed to the Plan that exceeded the amounts allowed under the Code," according to the company's 2013 regulatory filing for its 401(k) plan. This year, it repaid more than $5 million in excess contributions made in 2014. For employees, that can mean paying more income tax and filing an amended tax return."
potatolicious 11y ago
Yep, every aspect of Amazon's compensation packages are designed to either not pay out, or keep employees involuntarily. Their RSUs vest at an exponential rate, rather than the linear vesting that's standard in industry. You vest only 5% in your first year, 15% in your second year, and 40% each in years 3 and 4. Tellingly, Amazon's median engineering tenure is 18 months - you tell me this vesting schedule wasn't designed with that in mind ;) Ditto, Amazon's signing bonuses are usually structured with a 2-year clawback. I'm not sure if this is an attempt to increase the median tenure or avoid paying out - or maybe a bit of both.

by wfo 11y ago

pm24601 11y ago

Agreed: per the article: "There's evidence that lower-paid workers aren't widely participating in Amazon's 401(k) plan—and that creates a problem for high earners at the online retailer. For a plan to maintain its tax status, it can't disproportionately benefit what the IRS calls "highly compensated employees." A lack of participation by the rank and file means higher-paid employees can't max out their contributions to the IRS limit and may even get some of their planned savings back. Every year since at least 2011, Amazon has had to repay amounts "withheld and contributed to the Plan that exceeded the amounts allowed under the Code," according to the company's 2013 regulatory filing for its 401(k) plan. This year, it repaid more than $5 million in excess contributions made in 2014. For employees, that can mean paying more income tax and filing an amended tax return."

potatolicious 11y ago

Yep, every aspect of Amazon's compensation packages are designed to either not pay out, or keep employees involuntarily. Their RSUs vest at an exponential rate, rather than the linear vesting that's standard in industry. You vest only 5% in your first year, 15% in your second year, and 40% each in years 3 and 4. Tellingly, Amazon's median engineering tenure is 18 months - you tell me this vesting schedule wasn't designed with that in mind ;) Ditto, Amazon's signing bonuses are usually structured with a 2-year clawback. I'm not sure if this is an attempt to increase the median tenure or avoid paying out - or maybe a bit of both.