Amazon’s RSU 25% Cash Option: FAQs and What to Know

Did you know that Amazon is piloting a new program to offer cash payouts for some of your restricted stock units? The Amazon RSU cash option allows you to take 25 percent of your Amazon RSUs in cash, with the other 75 percent remaining a traditional stock compensation package. 

As of 2025, this program is still in a pilot stage, so it’s not yet available to all employees. But if you have been invited to participate, is it a good fit for you?

This guide will give you everything you need to know about the Amazon RSU cash option, why it warrants a second look, and when you should consider taking it if the opportunity arises. 

What is Amazon’s RSU Cash Option?

The Amazon RSU Cash Option program was first offered in 2024 and will return for 2025, being offered to select employees. 

At its heart, it’s a way to take some of the risk of restricted stock units from the equation for employees who would rather take cash. Instead of taking all of your RSUs as part of your compensation, you have the option to take 25 percent in cash and 75 percent in stock.

The cash option eliminates the fluctuations of the market that can impact your stock value and ultimately have a significant impact on your overall compensation for the year. However, you may not earn as much as if you took the full value of your RSUs. 

Who Can Participate in the Program?

Unfortunately, this is still a pilot program that is not available to every employee. You must be invited to participate, and Amazon extends that invitation via email if you’re eligible. 

In 2024, employees L4 to L8 with sixteen or more RSUs vesting in 2025 were invited, but the 2025 participation may be different.

Depending on the results they see, Amazon may eventually initiate a full rollout to everyone, but it remains limited for 2025.

What are the Pros and Cons of the Program?

Deciding whether to opt into the cash option for your RSUs is a complex decision with many pros and cons. It may seem like a smart decision to opt for the cash option, especially in an economy where stocks are volatile. You get the cash upfront at the set planning price, and you do not have to think again about what that stock is worth.

The downside to taking the cash option is that you never know what the stock is likely to do over the months ahead. If you take the full 100 percent vestment of the RSUs, you could earn more by taking the chance. However, you are doing just that—taking a chance. Stock prices may be higher or lower at the time that the stock vests. 

Of course, you may not want your portfolio to be as heavily composed of Amazon stock. If you find that your portfolio is overexposed based on RSUs you received as compensation over the last few years, you might want to diversify by taking the cash and investing elsewhere. Too much stock in any one position could put you in a bind in a market slide. 

Should I Take the 25% Cash Option?

The right decision about what you should do with your Amazon stocks is highly individual. What is right for you may not be right for the next person. Here are some considerations you might start to think through if you receive the email inviting you to the 25% cash pilot program.

Too Heavily Concentrated in Amazon Stock

This is the perfect time to sit down with your financial planner and have a hard look at the contents of your portfolio. If you’ve been at Amazon for a while, you’ve likely accumulated a significant amount of Amazon RSUs. Your portfolio may be skewed toward Amazon stock, leaving you exposed to concentration risk. If the company were to hit a major downturn, you would have minimal protection against that loss. 

The only option would be to either cut your losses or hold tight and hope for a comeback. You could diversify your portfolio if you took the cash option and invested in other stocks. Employees could also invest in real estate, 529 savings plans for their kids, or other things that require upfront cash. 

Upcoming Major Purchases

Is this the year you finally buy your dream home? If you have a major purchase on the horizon and need more liquidity, taking the cash option may make the most sense. 

Additionally, you will know exactly how much you will receive based on the planning price for the cash option, whereas RSUs fluctuate. Cash may be the better option when estimating your available budget.

Current Market Conditions

Think critically about how the market is doing right now. We have seen a lot of ups and downs over the past few weeks with a new administration, and the market may take some time to truly recover. 

If you planned to take your RSUs and cash them out immediately, you may earn less than you thought you would. If you do not mind holding onto them until the market rebounds, then it may be beneficial to take the RSUs and hold. 

Maximize Your Amazon Benefits with Consilio

Have you received the email inviting you to the Amazon RSU 25% cash option for 2025? 

Consilio Wealth Advisors is a fiduciary and wealth planning group specializing in helping tech professionals from Amazon make the most of their unique compensation structures. We work almost exclusively with complex portfolios and compensation structures like yours, and we know the ins and outs of maximizing your stock options, RSUs, cash options, and other benefits!

Grab access to your free Amazon resource guides or give us a call to set up your free consultation today!

DISCLOSURES:

The information provided is for educational and informational purposes only and does not constitute investment advice or legal advice and it should not be relied on as such. Consilio Wealth is not a law firm, and our employees are not legal professionals. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.

The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.

This document is for your private and confidential use only, and not intended for broad usage or dissemination.

No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. All investments include a risk of loss that clients should be prepared to bear. The principal risks of CWA strategies are disclosed in the publicly available Form ADV Part 2A.

Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income. You cannot invest directly in an Index.

Past performance shown is not indicative of future results, which could differ substantially.

Consilio Wealth Advisors, LLC (“CWA”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where CWA and its representatives are properly licensed or exempt from licensure.