[dudul]

If you publish a job description and already know that your budget won't let you match market value I would just not mention salary at all in the ad.

Stating "competitive" while you know very well you're not is harmful in 2 ways: - candidates who know the market will be very disappointed after taking the time to interview, most likely resentful and they will spread the word - if someone actually accepts the low ball offer presented as "competitive" it means that they have no clue what the market is and you probably don't want to hire them.

You can be very upfront about it though, "salary below market value but most of our compensation package is composed of options/equity".

[itschaffey]

That's a reasonable assumption in all fairness. And I would agree that the other 'perks/benefits' need championing in cases where firms can't match market value (whether it be equity, healthcare, daycare, or even free beers/billiards on Fridays).