Should I request equity shares as part of my compensation?

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How do I weigh the benefits against the potential downsides? Would it make sense only for certain types of companies or roles?

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Ryan Collins 21 Oct 2025

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When I joined a startup as a software engineer, I was offered equity shares along with my salary. I researched the company's financial health and growth potential before accepting. Over three years, the company grew 10x in valuation, turning my equity into a significant bonus beyond my salary. However, during that time, the shares were illiquid and tied to company performance—if the startup had failed or stagnated, those shares would have been worthless. This experience taught me that equity is more beneficial in high-growth companies where you believe in long-term success but less so in stable or declining firms. The key takeaway is to assess your risk tolerance and trust in the company’s future before requesting equity.
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L. G. 25 Dec 2025

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Evaluate company growth stage and financial health before requesting equity. Target startups or high-growth firms where equity can represent 10-30% of total compensation upside. Prioritize roles with direct impact on value creation to maximize equity benefits. Balance risk by negotiating a salary floor plus equity for best-case wealth accumulation.
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Everett Carpenter 5 Nov 2025

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Only request equity if you understand dilution and exit scenarios clearly
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E. W. 19 Dec 2025

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Ignore the notion that equity is a guaranteed windfall; instead, anchor your negotiation by quantifying its potential value relative to salary. Script: "Considering my role's impact and market benchmarks, I’d like to discuss a compensation package with 10-20% in equity for startups or high-growth firms where upside justifies the illiquidity and risk."
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Accepted Answer · 2025-10-25T01:23:35+00:00

Requesting equity shares can be a smart move, but it depends on your risk tolerance and career goals. Equity often comes with vesting schedules, meaning you need to stay with the company for several years before fully owning those shares. This can limit flexibility if you want to change jobs quickly. Also, not all equity is created equal—stock options might require you to pay upfront exercise costs, which could add financial strain.

Equity makes more sense in startups or fast-growing companies where there's potential for big upside. In established firms offering restricted stock units (RSUs), the value tends to be more stable but less explosive. Consider how much control and influence you'll have too; senior roles may gain more from equity than entry-level positions because they impact company direction more directly.