[bartonfink]

It's sloppy thinking to equate taking equity and showing responsibility. There are plenty of reasons to turn down equity in favor of a higher salary, and many of them have nothing to do with a lack of responsibility.

That said, I agree that talking to him is the best solution, at least for a first step. If nothing else, it shows that his output is noticed, and that what he does is important. Even if he doesn't give you a solid answer to the ? "What's up?", he knows that you've noticed his output tailing off. This gives him a good chance to self correct, and can avoid a more difficult conversation down the road. Plus, these conversations are far cheaper than an equity grant or a raise. Talk to the kid and see if things clear up in a couple of weeks.