It depends how old you are, how senior you are, and how likely you are to switch companies in a shitty situation. It works for a specific (perhaps more stable) archetype of engineering hire for sure!
Lesson learned, but I don't think there's an archetype of engineer that prefers that kind of risk profile over large cash payments each month. My downside for Y1 at Amazon is 4% of the agreed upon TC.
Perhaps I'm not as good as a negotiator as I thought (or the schedules are within the past two years) b/c I haven't ever received an offer that balances the agreed upon TC as you describe. It sounds great!
- Year 1: base + high prorated signing bonus + 5% stock vest
- Year 2: base + slightly lower signing bonus + 15% stock vest
- Year 3 and 4 - base + 40% stock vest
If the stock doesn’t move, you should make about the same amount Years 1 through 4 or slightly more.