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Compensation15 min read read
Startup Equity Compensation: The Complete 2025 Guide
Equity is your most valuable recruiting tool. Here is how to use it effectively to attract top talent.
R
Roles Team
Talent Advisors · January 13, 2025
# Startup Equity Compensation: The Complete 2025 Guide
Equity is your secret weapon for recruiting.
Understanding Your Equity Budget
Typical option pool is 10-20% of company. Plan for 4-5 years of hiring.
Grant Sizes by Stage
### Seed Stage - First engineering hire: 1-2% - First business hire: 0.5-1% - Early employees: 0.25-0.75%
### Series A - VP/Director level: 0.25-1% - Senior IC: 0.1-0.25%
Vesting Terms
4-year vesting with 1-year cliff is standard. Consider extended exercise windows for retention.
The Bottom Line
Equity is powerful when used well. Be transparent and consistent.