What are the pros and cons of equity sharing compared to a salary?
Equity sharing can offer long-term financial benefits if the company grows, but it comes with risks. A salary provides immediate income but lacks the potential for growth.
Can you explain how equity sharing works?
Sure! Equity sharing involves giving employees a stake in the company, often through stock options, which can increase in value.
What are the risks of choosing equity over a salary?
The main risks include the potential for the company's value to decrease, which can lead to a loss of investment, and the uncertainty of when or if you can cash out.
Is it common for startups to offer equity instead of a higher salary?
Yes, many startups offer equity as part of compensation packages to attract talent while conserving cash.
What should I consider when deciding between equity and salary?
Consider your financial needs, the company's growth potential, and your risk tolerance. It's important to weigh immediate income against potential future gains.
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