See equity compensation for jobs in the tech industry
In private companies, employees are sometimes (especially in tech) offered stock options as part of their compensation package. These options represent a percent of the total outstanding shares of the company. In order to best understand the value of the shares, it’s vital to know what percent of the company those shares represent. By being able to back into that percentage, employees can get a baseline of the current value of the grants, and can understand how their equity grants compare with other market offers. There are additional items to consider with private equity grants including: vesting period, strike price, and timeline required to purchase options after employment has ended. But most important to understand is the percent ownership. In public companies the value of the stock, stock options, or RSUs is much more easily calculated because the shares have liquid cash value immediately attributed to them by the current price of the public stock. In the equity calculator above, we show the equity ranges employees typically receive in different job titles based on the amount of money the company has raised, and whether it’s a private or public company.
The equity ranges by job title & amount of money a company raised, were determined through extensive research. We interviewed dozens of company leaders and recruiters in tech to normalize the ranges in our equity calculator. There may be some outliers, but for the most part the ranges you'll see above, accurately reflect the current market rates for tech employees in private and public companies. Once a registered member of Comparably, you can see the specific break-down of what specific job titles make in equity, based upon thousands of data points from real tech employees.
The information above is made available for non-commercial use and is the copyright of Comparably, Inc.