The Salary vs Equity Weigh In
For many start-ups and scale-ups, cash can be hard to come by. As a solution to still attract and incentivize premier talent, these companies frequently promise an equity stake in the business for a lower base salary (rather than a high annual salary) in exchange to conserve cash flow for the growth and development of the business.
Despite the risks equity holds, the rewards for both employee and employer shouldn’t be overlooked. For employees, earning shares in the company means the harder they work to promote the start-up’s brand and contribute to its growth and development, the higher the reward. Startup founders and critical decision-makers know that the harder their employees work, the greater the odds that the company goes public through an IPO.
We understand by speaking to many of our clients and candidate pool, the back-and-forth conversations taking place are around what is the better deal? A more generous salary, or taking the plunge and securing equity as part of a compensation plan.
To help you make that all-important decision, we have created the below resource to highlight the main benefits of both. To supplement this graphic, read our article ‘Equity Vs Salary: Who Tops Trumps?’ which dives deeper into the nuts and bolts of equity.