[jpmcglone]

I interviewed for a company once that had different kinds of offers, ranging from low-salary/high-equity, to high-salary/low-equity. I thought that was an interesting idea :D They had 5 options total, and the middle option wasn't awful. I'd like to see more of this in the valley.

[sama]

I always used to make offers like this--I think it's a good way to do it.

[hootener]

We do this, but use a sliding scale. The middle of the scale is what's locally considered to be a fair salary and fair equity compensation for whatever role we're hiring for. The equity / salary offered at each end of the scale tends to fluctuate depending on the impact of the role.

So far it's worked out well. I think potential hires like the flexibility because it lets them optimize for larger short term gain (a higher salary) or a potentially larger long term gain (more equity if the company sells, IPOs, etc.)

Anecdotally it tends to make negotiations easier for us. We basically end up presenting the entire solution space we're willing to offer for the ''what's my salary and equity'' problem. With the extents known, negotiations tend to settle around some point within that solution space. Your mileage, of course, may vary, though.

[robryan]

I wonder with these arrangements, is there any pressure or implied pressure on people to accept a larger equity amount? Similar to the issue with unlimited vacation time.

[leroy_masochist]

The one time I got that kind of offer, I got a lot of pressure from the hiring manager to take the most equity possible. They basically insinuated that doing otherwise was disloyal -- although, they cloaked the message in a super-positive tone, saying something like, "we are always really stoked when new hires choose the most equity possible because they believe in the mission". I know those words might sound squishy but trust me, there was no ambiguity about what they meant.

In retrospect I wish I had taken the higher salary.

[swampthinker]

Any specifics on the amount of equity offered? That's an interesting concept.

[jpmcglone]

I don't remember specific numbers (this was over a year ago) but I imagine it would change depending on the startup. I remember thinking the offers were fair.

[imh]

I've heard of saying: "Valuing options at $x/share, we'll give you $y divided however you want between equity and salary."