[saas_co_de]

From an economic perspective I don't think equity can be a very strong motivation for individuals.

As an individual your work may be totally optimal and yet the equity may be worthless for a thousand reasons that have nothing to do with your work. Consequently, a rational person will not see equity as being much of an incentive.

If you take that a step further you are giving up equity in your company but all of the smart people are valuing it at zero when they are assessing your comp offers so you are giving it away for nothing in return. Since this employee equity didn't create any value for the company it is only rational that if your company becomes successful you make sure the employees don't really get anything out of it, which is usually what happens.