How Much Equity Should I Ask For? Startup Compensation Benchmarks
The answer depends on three things: your role, the company stage, and your leverage. This guide shows you exactly what to ask for based on real market data, with negotiation scripts you can use today.
The Quick Answer: Equity Benchmarks by Role
Here's what startup employees typically receive by role and company stage:
| Role | Early Stage (#1-10) | Early Stage (#11-50) | Growth (Series A+) |
|---|---|---|---|
| Senior Engineer | 1.5% - 3.0% | 0.8% - 1.5% | 0.3% - 0.8% |
| Engineer | 0.8% - 1.5% | 0.4% - 0.8% | 0.15% - 0.4% |
| Senior PM | 1.0% - 2.0% | 0.5% - 1.0% | 0.2% - 0.5% |
| Product Manager | 0.6% - 1.2% | 0.3% - 0.6% | 0.12% - 0.3% |
| Senior Designer | 0.6% - 1.2% | 0.3% - 0.6% | 0.12% - 0.3% |
| Designer | 0.4% - 0.8% | 0.2% - 0.4% | 0.08% - 0.2% |
| Marketing Lead | 0.8% - 1.5% | 0.4% - 0.8% | 0.15% - 0.4% |
| Sales Rep | 0.3% - 0.8% | 0.15% - 0.4% | 0.05% - 0.15% |
| Head of Engineering | 2.5% - 5.0% | 1.5% - 2.5% | 0.8% - 1.5% |
| VP of Product | 2.0% - 4.0% | 1.2% - 2.0% | 0.6% - 1.2% |
| Head of Marketing | 1.5% - 3.0% | 0.8% - 1.5% | 0.4% - 0.8% |
| C-Level (Hired CEO/CTO/CFO) | 5.0% - 10.0% | 2.5% - 5.0% | 1.0% - 2.5% |
How Company Stage Impacts Your Ask
The earlier you join, the more equity you should ask for. Here's why:
Pre-Seed / Seed (#1-10 employees)
- Risk: Highest (most startups fail at this stage)
- Salary: Often below market
- Equity ask: Aim for the upper range of benchmarks
- Tradeoff: You're taking a bet on the company—demand upside for that risk
Seed / Series A (#11-50 employees)
- Risk: Moderate (company has traction but not proven)
- Salary: Should be closer to market
- Equity ask: Mid-range of benchmarks
- Tradeoff: Still early enough to matter, but less risk
Series B+ (50+ employees)
- Risk: Lower (company has proven product-market fit)
- Salary: Should be at or above market
- Equity ask: Lower range of benchmarks is acceptable
- Tradeoff: Less equity potential, but more stability and salary
How to Calculate Your Equity Ask
Before you negotiate, know your number. Here's the formula:
Step 1: Find Your Benchmark Range
Use the table above to find your role and stage. For example: Senior Engineer joining at Series A = 0.3% - 0.8%
Step 2: Assess Your Leverage
- High leverage: You have competing offers, unique skills, or the company really needs you → Ask for the upper range
- Medium leverage: You're a solid candidate but not exceptional → Aim for mid-range
- Low leverage: You really want this job and don't have alternatives → Accept lower range or negotiate salary instead
Step 3: Calculate the Dollar Value
Understand what your equity is worth at different exits:
0.5% equity at different exits:
- $50M exit = $250,000
- $100M exit = $500,000
- $500M exit = $2,500,000
- $1B exit = $5,000,000
Negotiation Scripts: What to Say
Script 1: Asking for More Equity
Script 2: Trading Salary for Equity
Script 3: When They Say "That's All We Can Offer"
Script 4: Asking About Future Grants
Red Flags: When to Walk Away
Some offers are not worth taking. Watch for these red flags:
- Equity is dramatically below benchmarks: If they offer 50% less than market without justification
- They won't tell you total shares outstanding: You can't calculate your percentage without this
- Huge unallocated option pool: A 20% unallocated option pool means massive future dilution
- No vesting acceleration on acquisition: You could get wiped out in an exit
- Strike price above fair market value: They're offering you options that are already underwater
- Vague promises: "We'll take care of you later" without specifics
Key Questions to Ask
Before accepting, get answers to these questions:
- What's the total fully diluted shares outstanding? (Required to calculate your percentage)
- What's the current 409A valuation? (Helps you understand the strike price context)
- How big is the unallocated option pool? (Bigger pool = more future dilution)
- What happens to my equity if I'm fired or leave? (Know your post-departure rights)
- Does my equity accelerate on acquisition? (Critical for your exit protection)
- When was the last funding round? (Helps you assess company stage and runway)
- How do refresh grants work? (Understand future equity potential)
Is Your Offer Fair? Check in 60 Seconds
Enter your offer details into our Equity Score Calculator and get an instant assessment of whether your equity package is fair compared to market benchmarks.
Check Your Equity Score (Free)The Psychology of Equity Negotiation
Most people don't negotiate their startup equity. This is a mistake. Here's why:
- Startups expect you to negotiate. The first offer is rarely the final offer.
- Equity compounds. An extra 0.1% could be worth $100,000+ at exit.
- It sets your baseline. Future grants are often based on your initial grant.
- It shows you understand your value. Confident candidates get better offers.
Common Mistakes to Avoid
- Not negotiating at all. Always ask—you won't lose the offer for reasonable negotiation.
- Focusing only on percentage. Consider salary, role, and growth potential too.
- Ignoring dilution. Ask about future funding rounds and the option pool.
- Not understanding vesting. Know your cliff, vesting schedule, and what happens if you leave.
- Forgetting about exercise costs. Options cost money to exercise—factor this into your decision.
- Over-valuing early-stage equity. 2% of nothing is still nothing. Be realistic about exit potential.
FAQ
What if they say no to my counter-offer?
Ask what else they can offer—higher salary, signing bonus, more vacation, or a guaranteed refresh grant. If nothing else is available, decide if the role is worth accepting as-is.
Should I take less salary for more equity?
Only if you believe in the company's exit potential and have the financial runway to accept lower cash. Early in your career, prioritize cash. Later, you can afford more equity risk.
How do I know if my offer percentage is fair?
Compare it to the benchmarks in this guide. Use our Equity Score Calculator for an instant fairness assessment.
What's a good equity offer for a first job?
For your first startup role, expect 0.1% - 0.5% depending on role and stage. Focus on learning and experience, not just equity.
Next Steps
You now know how much equity to ask for. The key is to ask confidently and negotiate reasonably. Startups expect you to negotiate—they won't rescind the offer for a reasonable counter.
Use these tools to finalize your decision:
- Equity Score Calculator — Is your offer fair?
- Offer Comparison Tool — Compare multiple offers
- Equity vs Salary Calculator — Tradeoff analysis
- Equity Benchmarks — Detailed benchmarks by role