Equity is quoted in ways designed to sound large. Five numbers make it comparable.
The five questions
- How many shares, and out of how many total?
- What is the strike price and the latest valuation?
- What is the vesting schedule and cliff?
- How long do I have to exercise after leaving?
- Have there been liquidation preferences that would rank ahead of me?
The exercise window matters most
A 90-day post-departure window can mean paying a large sum in cash and tax to keep options you cannot sell. Extended windows of several years are much more candidate-friendly and worth asking for.
Value the salary first
Accept an offer on the cash you will actually receive. If the equity pays, treat it as a windfall.
Common questions
Is startup equity worth anything?
Most of the time, nothing. Occasionally a great deal. Never accept below-market salary purely for options.
What is a vesting cliff?
A period, usually one year, before any shares vest. Leave before it and you get none.