Equity in early-stage companies is one of the most opaque and most under-negotiated parts of compensation, particularly for women. Coming in with the right framework and the right benchmarks can mean orders of magnitude difference in eventual outcomes.
What you're actually negotiating
Equity percentage
Typically 0.1-2% for senior individual contributors and managers; 5-15% for early executives. Highly variable by company stage and role.
Vesting schedule
Standard is 4 years with 1-year cliff. Some companies offer accelerated vesting on change-of-control — significant in acquisitions.
Exercise window post-departure
Standard is 90 days; longer windows (10 years) protect ability to exercise options on tax-favourable timing.
Refresh grants
Annual additional equity post-original grant. Often forgotten in initial negotiation but compound significantly.
How to research the benchmark
Levels.fyi for tech equity grants by company. Carta data on equity by stage and role (some publicly available). Talk to peers at similar-stage companies — informal but useful. Recruiters often have specific data on current market grants.
The questions to ask before signing
What's the company's last priced round valuation? (Determines your equity's current paper value.) What's the cap table look like — preferred vs common stock implications? (Common stock often worth less in liquidation events.) What's the dilution forecast for next round? (Your % may shrink as company raises.) What happens to my equity if the company gets acquired before vesting completes? (Acceleration provisions matter.)
Common mistakes that cost
Accepting first offer without research. Equity ranges have huge spreads; first offer often well below upper bound.
Not understanding strike price implications. Higher strike price = less upside per share.
Not negotiating cliff acceleration. If the company doesn't work out at 11 months, you walk away with nothing under standard cliff terms.
Not negotiating exercise window extension. 90 days post-departure is short; if you can't afford to exercise, you lose the equity. 10-year windows preserve optionality.
Equity is one of the most consequential parts of startup compensation and the part most often under-negotiated. The asymmetry of information between hiring company and individual contributor is large; closing it pays off.