Hacker News Reader

Comment by jayess | Hacker News Reader

This sort of vesting schedule is pretty common. I'm not sure busting Amazon's balls on this one is very genuine.

> The match of employee contributions into their 401(k) plans is below average and made entirely in Amazon stock, which leaves employees dangerously exposed to the company's fortunes.

How about this other aspect of their 401k plan? I have never worked at a company that does that. Being so closely tied to your place of work financially is usually not recommended.

My employer matches in company stock too. It's not a big deal, you can exchange it immediately for a portfolio if you want via the 401k management portal (T Rowe Price for me). It's probably just politically easier for the board to issue more shares than to spend cash.

But now you've got the added tax implications of having to sell stock right when you get it.

It's a 401k, there are no taxes upon sale.

It's not the tax that is the problem but the risk that an employee is taking with single company stock in their retirement portfolio.

All employers should have their "balls busted", whenever possible.

Demand more.

Is it? I worked for 3 companies. 2 allowed matching right away, other gave a % of the salary every year, but you couldn't contribute yourself.

It seems fairly common to the point that 401k vesting horizons are something that can be expected. Filtering on "Vesting" against the Bloomberg data, 2 of the top 10 have similar conditions (with MasterCard requiring 4 years instead of 3, though their match is considerably better than Amazon's). Outside of the top 10 there is still a healthy representation of companies that do not immediately vest.

Well-funded 401k matching plans that vest immediately certainly help with mobility, for those who care to stick around for the match!

Yeah this is only relevant as news if the implementing company also has an habit of firing people at the 34 month mark.

I mean, it does suck, but it is what one sign for, so no amount complaining later will change that

I would say busting anyone's balls over that one is genuine. Especially because it sounds like their competition in hiring doesn't do that.

Reply on news.ycombinator.com