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Discussion on: Why I Quit a $500K Job at Amazon to Work for Myself

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Daniel Vassallo Author

It's a payment in AMZN stock instead of cash. Amazon, like most public companies, has a cap on cash compensation, and pays the rest in stock. Public companies prefer to do this because stock compensation doesn't come out from the company's bank account, but comes out from diluting their total shares. But to the employee, these end up as cash in the bank account, just like regular cash compensation. They are taxed the same as well.

At Amazon the cash cap is $160K. Anything over that amount gets payed in stock (RSUs).