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Business & Workplace Languagenoun · /ˈɛkwɪti/

equity

In simple English

In tech companies, equity usually refers to stock options or shares given to employees as part of their compensation package. This is especially common in startups where salary may be lower but employees receive equity that could become valuable if the company grows or goes public. Equity aligns employee interests with company success. The term also has a broader meaning related to fairness and inclusion—many tech companies now discuss equity in hiring, promotion, and workplace culture to ensure underrepresented groups have equal opportunities. Understanding equity is crucial for career negotiations and understanding your total compensation package.

What does equity mean when offered as employee compensation in tech companies?

At a glanceCEFR B2
Commonness5/5
Versatility5/5
FormalityCasualFormalFormal
Spoken ↔ WrittenSpokenWrittenBoth
Directness ↔ DiplomaticDirectDiplomaticNeutral
RegionUS and UK
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Say it like this

✓stock equity and options
✓equity compensation package
✓vesting equity over time
✓equity stake in the company
✓diversity and equity initiatives

Real examples

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 are 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."

Don't say this

Handle with care. Often confused with equality. Equity means fair distribution based on individual needs; equality means treating everyone the same way.

✕They gave us equal equity to everyone in the team.
✓They gave us equal shares of equity to everyone in the team, or They distributed equity equally.— Equity already implies a portion or share; do not use 'equal equity.' Use 'equal shares of equity' or 'distributed equity equally.'
✕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

noun

equity

"She negotiated for more equity in her compensation package."

noun

equitable (adjective form)

"We aim to create an equitable workplace for all employees."

noun

equitably (adverb form)

"The bonus pool was distributed equitably among the team members."

Often used with

equity compensationSalary and benefits package that includes stock options or shares
vesting equityEquity that gradually becomes owned by the employee over time, usually four years
equity stakeOwnership percentage or share in a company
diversity and equityInitiatives focused on fair treatment and opportunities for all groups
equity optionsRight to purchase company shares at a set price, usually granted to employees

Similar words

ownership stakeMore specific; refers only to company ownership, not broader fairness concepts
stock optionsRefers specifically to the right to buy shares; equity is broader and includes actual shares owned
fairnessGeneral term for just treatment; equity is more specific in workplace and finance contexts

Opposites

inequalitydiscriminationfavoritism

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Practice

Try it

4 quick exercises

Complete the sentence

1. The job offer included a base salary of 100k plus 0.25 percent _______ with a four-year vesting schedule.

Spot the mistake

2. Which sentence uses 'equity' incorrectly?

Pick the most natural phrasing

3. Your startup is discussing how to distribute shares. Which sounds most natural?

Rewrite naturally

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.'

Questions

Quick poll

Have you said "equity" in a standup this week?

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