Concept · Talent and hiring

Equity vs cash compensation

Also called: equity compensation, cash compensation, compensation, comp, salary, sweat equity, equity only, pay range, total compensation

The two main ways a startup pays people. Cash is salary or an hourly rate. Equity is a share of ownership, usually as stock options, which pays off only if the company becomes valuable.

For example: A job post lists a salary of 90,000 dollars plus stock options. Another post offers equity only. Stating which one up front lets a candidate judge the offer.

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