Thread regarding Amazon.com layoffs

It's actually random comp - RSU comp is based on the date that one got an offer and the stock price at vest dates. If a high performer gets an offer when the stock price is high and the vests have a stock price worth less than the stock price when it was high, then the high performer is sc--wed. If it was based on performance, then it would be something very different. Amazon's mistake is that they're assuming "everyone" exceeded their TCT and that their RSU's grew 15% each year. Cheap.

Listen, it's not rocket science. A low and high performer in the same job code/level start on Day 1 with the same TCT. Because the shares fell after the high performer got their offer, the low performer, who's offer arrived later has more shares. Since performance doesn't matter at Amazon, both will get zero raise, zero RSU grants - low performer and high performer can be over their TCT with the stock rising, but low performer will get more for low performance. Get it?

Again, not true. You don't have enough knowledge of how compensation is determined.
A low and high performer in the same job code/level do not have the same TCT each year.

Actually, it doesn't depend on annual performance reviews - senior employees (and above) simply don't get raises and RSU grants regardless of TCT in 2024. In fact, adjusting to a TCT has nothing to do with it - this is about the shares that were promised in the offers. In fact, the low performer and high performer can have the exact same TCT, but the low performer will still have more shares granted because they joined AFTER the high performer, when the stock price falls. So the high performer ultimately gets sc--wed. There are no refreshers at Amazon.

That's not exactly true. Depends on the annual performance reviews and your TCT. If the stock drops as a high performer and the TC is below your target, additional shares are granted.

Imagine a low performing employee (low performer) and a high performing employee (high performer) that joins Amazon two months apart. Same job code, duties, nearly same original RSU grant values at start. Low performer gets 2000 shares @ $93/share. High performer gets 1400 shares @ $133/share. One year after the low performer joined, Amazon stock tumbles to $110/share and stays at that level for 2 more months. Both employees get 0 RSU's. Low performer's shares are worth $220000, high performer's shares are worth $154000. Low performer has $66000 more in equity than high performer.

After year one at Meta, high performer would get some new RSU grants with a performance multiplier of 1.5 applied, potentially bringing them to $231000 in equity (or $10,000 more in equity than low performer). No compo changes to low performer.

At Amazon, performance is an afterthought... so after year one, low performer would keep $66000 more in equity than high performer due to when they both joined, while both get no new RSU grants.