equity compensation
/ˈɛkwɪti ˌkɒmpənˈseɪʃən/
CommonPart of a pay package given as company stock or the right to buy it, instead of just cash.
Real-world examples3 examples
| # | Example | What it means | Source |
|---|---|---|---|
| 01 | negotiated better equity compensation because the base was not moving | When the salary was stuck, pushed for more stock instead. | linkedin, 2024 |
| 02 | nobody explains equity compensation when you're 22 and joining your first startup | Young employees often take equity without understanding how it works. | tiktok, 2023 |
| 03 | big tech base is higher but this startup's equity compensation could be life-changing if they exit | Weighing certainty of high cash pay against risky but potentially large equity. | reddit, 2024 |
Use it when
- Discussing the stock or ownership portion of a job offer.
- Comparing offers where one has more equity vs more cash.
- Explaining the non-salary part of total compensation.
Do not use it when
- You mean a specific type of equity like RSUs or options.Use “RSUs or stock options” instead.
Origin and context
Finance and HR term that spread into everyday career conversation as stock-based pay became standard at tech companies and startups. RSU culture on Twitter and LinkedIn brought it into wider use after 2015.
- First seen
- 1990s
- Confidence
- medium
Cite this page
Use this stable URL to reference the entry.
https://slang.fyi/equity-compensationUpdated: 2026-08-28License: CC BY 4.0