What equity package should I offer in 2023?

If you are an employer within a recruitment process, you may be wondering about what equity, alongside salary and benefits packages, may secure your ideal candidate. The simple answer to this question… there is no simple answer! 

There are many variables that affect the amount that is usually offered by employers, often depending on the risk to the candidate.  A very early-stage start-up that is boot strapping and can’t afford to pay much of a salary will offer more than a post-series B scale-up with a proven product–market fit. 

Variables that affect equity allocations

Business variables: 

• Business status (start-up, scale-up, enterprise) 
• Funding received to-date 
• Number of employees 
• Time sensitivity and urgency to fill the vacancy 

Domain variables: 

• Do you have a proven product market fit? 
• Is your product / domain exciting? 
• Does your product have a social good/bad association? 

Offer variables: 

• Salary offered 
• Benefits package and other incentives included 
• Value of the individual / what would they bring to the table 

Candidate variables:

• Scarcity of the skills / niche skills and experience of the individual 
• Value of the individual / what would they bring to the table 
• Level of confidence in the candidate 

Benefits package examples

We can give tailored advice on benefit packages offered, taking into account the variable factors above. Although there is no definitive answer we can give per job role, here are some examples of recently placed candidates: 

This article was updated in May 2023.