If you’re interested in working for startups, you should expect some sort of equity compensation. Either vested shares or options. Mentally, should should price any of this equity compensation at zero dollars, if there is no active market for it (i.e. you’re not getting shares at a company which is already public or with an active secondary market for it).

Companies will try to use their latest valuation, based on external auditors or most recent funding round, to give you a nice rosy representation for what your equity compensation might be worth. But it’s not real until money hits your bank account!

I’m not advocating that you do not negotiate for a fair equity compensation, I’m just recommending, for your peace of mind and spending habits, always consider it is worth nothing. Because there’s a very real chance it will amount to nothing eventually, rather than something – in which case – it will be a nice financial surprise!