With Atkinson Wealth Strategies being located here in the Pacific Northwest we have first hand experience in the massive growth of Amazon. With the stock price hitting record highs per share, many employees have started asking themselves if their investment strategy is right for them, and what they should be doing with their restricted stock units (RSUs).
Top questions that Atkinson Wealth Strategies receives from Amazon employees include:
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Frequently Asked Questions:
Software Engineer: SDE I (L4), SDE II (L5), SDE III & Senior SDE (L6), Principal SDE (L7), Senior Principal SDE (L8), Distinguished Engineer (L10)
Software Engineering Manager: L6 SDM (Software Dev Manager), L6 SDM, Senior SDM (L7), Director (L8), VP (L10), SVP (L11)
Product Manager: Product Manager (L5), Senior Product Manager (L6), Principal Product Manager & Senior Manager PM (L7), Director (L9), VP (L10)
Product Designer: IC4 Associate Designer, IC5 Designer, IC6 Senior Designer & Design Manager, IC7 Principal Designer & Senior Design Manager, IC8 Senior Principal Designer & Design Director
1.) What Is an RSU?
A Restricted Stock Unit (RSU) is a right to receive a share of Amazon.comcommon stock after you’ve satisfied the vesting period.2.) Who Is Eligible to Receive RSUs?Generally, all full-time Amazon employees in the United States are eligible toreceive RSU awards.3.) When Are RSUs Awarded?In general, all eligible Amazon employees receive an RSU award at the time they arehired. Additional RSU awards, if any, are determined on an annual basis in April.4.) What Is an Award Agreement?The RSU Award Agreement is a legal document that describes your award’sterms and conditions, such as the number of RSUs awarded and the vestingrequirements. When it’s time to review and accept your agreement, it will beposted to your online RSU account and you will receive a notification emailfrom Amazon’s stock plan administrator Morgan Stanley.5.) How Many RSUs Will I Receive?RSU awards are based upon job level. For certain job levels and positions, otherfactors, such as an employee’s compensation range and the results of annualperformance reviews, may also be considered.6.) What Is a Vesting Period?The vesting period is an amount of time you must work full-time as an Amazonemployee for your RSUs to become Amazon.com shares. For example, ifyou were awarded 10 RSUs with a two-year vesting period on April 1, 2013,the vesting period for those 10 RSUs would end on May 15, 2015. Generally,to satisfy the vesting requirements, you can have no breaks in service duringthe vesting period and you must be a full-time employee at the time the RSUsvest. Information about breaks in service is located on Inside Amazon. Vestingperiods will be stated on your Amazon RSU Award Agreement.
March 1st, 2020