>I guess our definitions of screwed are slightly different. It sounds like they are giving you extra compensation in case your options happen to do poorly one year. They could have chosen to say "we can't control the market, you received 10 shares and whether they go up or down is out of our control". This way you win some and lose some based on the market. Even with having to wait for 2 years that's not too bad (it's basically free money).
I will try to explain again. Let me offer an example that captures one part of the problem.
Let's say you join Amazon today (Day 1). In a year from now, let's say I promote you and give you increasing scope and responsibility. Now if the value of your previous stock grant (from Day 1) has appreciated, I will give you no additional compensation. As your manager, I can get you through multiple promotions without providing you any meaningful compensation increase since Day 1.
Now because your compensation weighs heavily on stock vests, let's say Amazon's stock performs poorly, falling behind even the SP500. So, your total compensation this year will drop significantly. I will offer you additional stock grants that vest in a year from now and two years from now. So if you stay with me for at least two more years, you can "earn" the compensation that you did not receive THIS year. If the stock continues going side ways or drops next year, you can make next's years losses by staying another 2 years (3 years total).
To put it bluntly, if you perform well and the company's stock increases, thank you very much. You previous stock grants have brought your compensation this year to its maximum. We won't have give you another dime.
If you perform well and the company's stock doesn't increase or drops – that's too bad for you. This year, that's YOUR loss to deal with. If you stick with us two years, we'll "try" to give you back the money we "hoped" to pay you this year.
>Were you working something like 80 hours a week for 10 years straight?
There are few people in Amazon engineering that work 40 hours a week, and any organization that normalizes that will get either re-org'd or have their products/services completely canned. 55-60 hours is a baseline. 80 hour weeks is not unheard of, for even 6 months at a time. There is NEVER a down time. You do A and then you move on to B and then C. If you fail to do A or if you decide to take a break between B and C. We do stack ranking and drop whoever falls at the bottom of the stack, even if they're pretty dang good. Somebody HAS to be let go. No way around it.