Say it like this
- stock equity and options
- equity compensation package
- vesting equity over time
- equity stake in the company
- diversity and equity initiatives
Use it at work
In an offer
- How much equity comes with this role?
- Can we talk about the equity part of the offer?
Understanding it
- The equity vests over four years with a one-year cliff.
- Is the equity stock options or RSUs?
Fairness
- We're working on pay equity across teams.
- Diversity, equity and inclusion is part of our values.
Don't say this
Equity already implies a portion or share; do not use 'equal equity.' Use 'equal shares of equity' or 'distributed equity equally.'
Don't mix it up
| Term | What it is | Who writes or uses it | When |
|---|---|---|---|
| equity | Ownership in a company | HR, founders | Offers |
| stock options | Right to buy shares at a set price | Startups | Offers |
| RSU | Shares given to you over time | Larger companies | Offers |
Practice
Try it
4 quick exercises
1. The job offer included a base salary of 100k plus 0.25 percent _______ with a four-year vesting schedule.
2. Which sentence uses 'equity' incorrectly?
3. Your startup is discussing how to distribute shares. Which sounds most natural?
4. Rewrite this using 'equity': 'We want to make sure that people from different backgrounds have the same chances to move up in their jobs.'
Say it out loud
Phrase 1 of 5
"stock equity and options"
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More about equity
Real examples(4)
- in a job offer discussion
"The offer includes a base salary of 120k plus 0.5 percent equity with a four-year vesting schedule."
- in a team meeting about diversity
"Our company is committed to improving equity in hiring and promotion across all departments."
- in a standup
"We're launching an equity program to ensure underrepresented groups have better career advancement opportunities."
- in a compensation negotiation
"I would like to discuss the equity portion of the compensation package before accepting the offer."
More mistakes(3)
Handle with care. Often confused with equality. Equity means fair distribution based on individual needs; equality means treating everyone the same way.
- ✕We focus on equity by treating all employees the same.✓We focus on equity by addressing individual needs and removing barriers for underrepresented groups.
True equity means fair treatment based on individual circumstances, not treating everyone identically (that is equality).
- ✕The startup offered me high equity but no salary.✓The startup offered me significant equity but a modest salary, or The startup offered me equity instead of a full salary.
'High equity' is vague; be specific about percentage or number of shares. 'No salary' is extreme; use 'modest salary' or 'lower salary.'
- ✕Our company is working on equity in the code.✓Our company is working on equality in the codebase, or Our company is working on fair resource allocation in projects.
Use 'equity' for fairness in people and opportunities; use 'equality' for treating code or systems the same way.
Other forms(3)
- equity noun
"She negotiated for more equity in her compensation package."
- equitable (adjective form) noun
"We aim to create an equitable workplace for all employees."
- equitably (adverb form) noun
"The bonus pool was distributed equitably among the team members."
Often used with(5)
- equity compensation · Salary and benefits package that includes stock options or shares
- vesting equity · Equity that gradually becomes owned by the employee over time, usually four years
- equity stake · Ownership percentage or share in a company
- diversity and equity · Initiatives focused on fair treatment and opportunities for all groups
- equity options · Right to purchase company shares at a set price, usually granted to employees
Similar words(3)
- ownership stake · More specific; refers only to company ownership, not broader fairness concepts
- stock options · Refers specifically to the right to buy shares; equity is broader and includes actual shares owned
- fairness · General term for just treatment; equity is more specific in workplace and finance contexts
Opposites(3)
- inequality
- discrimination
- favoritism
Questions(5)
- What does equity mean when offered as employee compensation?
- Equity refers to ownership shares or stock options in a company given to employees as part of their compensation. Instead of receiving all money as salary, employees receive a percentage stake in the company. If the company grows or goes public, this equity can become valuable. It typically vests over time (usually four years), meaning you gradually own more as you stay with the company.
- What is the difference between equity and equality?
- Equality means treating everyone the same way. Equity means giving people what they need individually to succeed fairly. In the workplace, equality might mean offering the same training to all employees, while equity means offering extra support to employees facing additional barriers. In compensation, equity refers to ownership shares; equality would mean identical salaries for identical roles.
- Why do startups offer equity instead of higher salaries?
- Startups often have limited cash but want to align employee interests with company success. By offering equity, employees benefit if the company grows. Employees become invested in the company's success, and the startup preserves cash for operations and growth. Equity also attracts talented people who believe in the company mission and are willing to take on more risk for potential future rewards.
- How much equity is typical in a tech job offer?
- Equity amounts vary widely based on role, level, and company stage. Early employees at startups might receive 0.1-1 percent or more. Mid-stage companies offer 0.01-0.1 percent. Senior executives receive more than junior developers. These percentages are typically vested over four years with a one-year cliff (you must stay one year to get any shares).
- Is equity formal or informal language?
- Equity is formal language used in professional and financial contexts. It appears in job offers, compensation discussions, and company policies. You would use it in negotiations, interviews, and workplace meetings. In very casual conversation, people might say 'shares' or 'options,' but in formal settings, 'equity' is standard.
