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Startup Salary vs Equity

Startups often offer below-market salary with equity upside. The question is whether the equity compensates for the salary gap. Model both sides of the trade-off.

Your package

Compare against market benchmarks

Total package thinking

A £70k salary with 0.3% at £10m valuation = £30k equity paper + £70k cash = £100k total. Compare to £90k at a big tech company with no equity. Risk-adjust equity by probability of exit.

Frequently asked questions

Should I take lower salary for more startup equity?

Only if the equity's expected value (probability-weighted exit scenarios) exceeds the salary gap. Early-stage equity is high-risk — model conservative, base, and upside cases before deciding.

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