There are three different ways Amazon employees are paid:
Base salary: The way you earn your base salary is pretty straight-forward. In early 2022 Amazon announced that they were more than doubling their maximum base pay from $160,000 to $350,000. This is fantastic news for current and future Amazonians who now have potential to earn a larger, more predictable salary, and not be so reliant on RSUs and Amazon’s stock price to supplement income needs.
Sign-on bonus: Many new employees will also receive a year one and a year two sign-on bonus. The bonus is paid out with every paycheck, so in essence, it’s just additional salary for the first two years you are at Amazon. As a quick example: If you are entitled to a $60,000 year one sign-on bonus, you will receive an additional $5,000 per paycheck. The same method of payment (every paycheck) will occur in year two, simply divide your year two sign-on bonus by twelve.
Restricted Stock Units (RSUs): Stock vests will begin on your first anniversary. Additional shares will vest at the end of year 2 and then every 6 months until you’ve been with the company for 4 years. Many Amazon employees receive additional refresher RSUs over time.
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