The difference is still almost ~$300k. Almost 1 extra year's income.
> But! There's no reason that the $120k cash just has to stay cash forever.
This is obviously a very simple scenario. There is obviously an assumption here that neither A nor B does any extra investing on the side and just hold onto whatever Amazon has paid them.
Individual investment into the stock market is a whole different can of worms. B could just invest that $120k cash in one of the r/wallstreetbets and lose it all. On the other hand, A could cash out all AMZN vests and invest that in TSLA.
The scenarios become endlessly complicated if we consider side investments in individual stocks.
I think, despite being grossly simplistic, this calculation may provide an interesting insight into why AMZN prefers to delay significant stock vesting for its employees, especially when other similar companies don't. Especially given the fact that avg. tenure at AWS (as per linkedin) seems to be 1.6 years. So a large number of AWS employees may not be receiving 80% of their stocks.