[djoldman]

> the whole point of equity compensation is that it replaces cash, as the startup rarely has sufficient liquidity in cash.

Understood and it makes sense. Offering equity to a potential employee is a way for the employee to benefit potentially on future growth in the company.

I'm proposing that if there is a future funding round, pay the employee a dividend from part of the proceeds. Or maybe give them more shares or a combination; but put it in writing from the start.