How to Negotiate Equity Compensation

Intermediate 10 min 16 steps 1578 views Rating: 3.9/5 Published: 2026-04-27

Ask to see the company's business plan.. Research the background of the company's founders and leaders.. Check the reputation and experience of the company's investors.

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Steps

1

Ask to see the company's business plan.

Step 1

Ask to see the company's business plan.

2

Research the background of the company's founders and leaders.

Step 2

Research the background of the company's founders and leaders.

3

Check the reputation and experience of the company's investors.

Step 3

Check the reputation and experience of the company's investors.

4

Ask how much money the company has and how long that will last.

Step 4

Ask how much money the company has and how long that will last.

5

Get the offer in writing.

Step 5

Get the offer in writing.

6

Talk to an accountant.

Step 6

Talk to an accountant.

7

Consider consulting an attorney.

Step 7

Consider consulting an attorney.

8

Evaluate the terms of the offer.

Step 8

Evaluate the terms of the offer.

9

Calculate the value of your equity.

Step 9

Calculate the value of your equity.

10

Compare your compensation to that of peers in your company.

Step 10

Compare your compensation to that of peers in your company.

11

Determine whether your vesting schedule makes sense for you.

Step 11

Determine whether your vesting schedule makes sense for you.

12

Present your counter-offer.

Step 12

Present your counter-offer.

13

Prioritize equity over cash.

Step 13

Prioritize equity over cash.

14

Limit your negotiating points to cash and equity compensation.

Step 14

Limit your negotiating points to cash and equity compensation.

15

Emphasize what you bring to the company.

Step 15

Emphasize what you bring to the company.

16

Decide whether to accept the offer.

Step 16

Decide whether to accept the offer.

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